Finance News 26 July 2016Posted by SANDEEP SHINDE on JULY 26, 2016EDIT

RBI fines BoB, HDFC Bank & PNB for violating KYC norms

The Reserve Bank of India (RBI) has slapped a penaltyon Bank of Baroda (BoB)

and HDFC Bankfor violating know your customer (KYC)/anti-money laundering (AML)

norms. While Bank of Baroda has been fined Rs 5 crore, HDFC Bank has been

penalised Rs 2 crore.

“The RBI has imposed a penalty of Rs 20 million (Rs 2 crore) on the bank on account of

pendency in receipt of bills of entry relating to advance import remittances made and

lapse in adhering to KYC/AML guidelines,” said HDFC Bank in a notice to the

exchanges. The lender added it has also implemented a corrective action plan to

strengthen the internal control mechanism to avoid such incidents in the future.

Health insurance pricing freed after 3-yr lock-in

The Insurance Regulatory and Development Authority of India (IRDAI) in its final norms

on health regulations has said insurers can change the pricing of a health insurance

product every year, three years after its launch.

Till now, product pricing could not be changed for three years.

Underwriting norms need to improve for cheap home loans

Indian Housing Finance Companies (HFCs) need to work on underwriting standards for

affordable home loans to control credit risks, according to Moody’s. The observation

becomes crucial, at a time when the government is pushing for an increase in home

ownership among underprivileged groups.

Life insurers infra investments up, equity assets down in FY16

Infrastructure investments of the life insurance industry has risen by 5.2 per cent to Rs

3,06,492 crore as on March 31. Equity investments (at market value), however, dropped

to Rs 5,95,389 crore as of FY16-end, compared to Rs 6,29,967 crore. This, said,

insurers, was due to the volatility in the stock markets