The Reserve Bank has imposed a fine of Rs 4.90 lakh on Hinduja Leyland Finance Limited for non-compliance with certain provisions of the KYC Guidelines, 2016. The central bank has imposed a fine of Rs 10 lakh on Poonawalla Fincorp Limited.
The Central Reserve Bank has imposed a fine on a bank and 2 finance companies. The Reserve Bank said on Friday that it has imposed a fine of Rs 1.27 crore on Bank of Maharashtra (BOM) for violating its instructions including Know Your Customer. Apart from this, action has also been taken against Poonawala Fincorp and Hinduja Leyland Finance.
Bank of Maharashtra fined
The Reserve Bank said that it has imposed a fine of Rs 1.27 crore on Bank of Maharashtra (BOM) for violating various guidelines including its KYC. RBI said that it has imposed a fine of Rs 1.27 crore on BOM in an order dated August 8, 2024. This fine was imposed for non-compliance of some RBI guidelines on ‘Credit System for Bank Loan Delivery’, ‘Cyber Security Framework in Banks’ and ‘Know Your Customer’.
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Apart from this, the Reserve Bank has imposed a fine of Rs 4.90 lakh on Hinduja Leyland Finance Limited for non-compliance of some provisions of KYC Guidelines, 2016. The central bank has imposed a fine of Rs 10 lakh on Poonawala Fincorp Limited. According to the statement, this action has been taken due to lack of regulatory compliance, and it is not related to the validity of any transaction with the customers.
Reserve Bank tightened the rules
The Reserve Bank tightened the norms for ‘Non-Banking Financial Company – Peer to Peer Lending Platform’ (NBFC – P2P Lending Platform) to improve transparency and compliance. P2P lending platforms connect borrowers directly to lenders without intermediary of banks or financial institutions. According to the revised master direction of RBI, P2P platforms should not promote lending as an investment product. They should not have features like assured minimum returns, cash option.
It also said that NBFC-P2P lending platforms should not entice customers to sell any insurance product that includes features such as credit enhancement or credit guarantee. The central bank also said that no loan should be issued unless the lender and borrower are matched as per the board-approved policy.
