RBI has imposed a fine of Rs 1.27 crore on Bank of Maharashtra (BoM) for violation of instructions. Apart from this, a monetary penalty of Rs 4.90 lakh has been imposed on Hinduja Leyland Finance Limited for non-compliance of certain provisions of the Know Your Customer (KYC) Direction 2016. A monetary penalty of Rs 10 lakh has also been imposed on Poonawala Fincorp Limited.
The Reserve Bank on Friday said that it has imposed a fine of Rs 1.27 crore on Bank of Maharashtra (BoM) for violating its instructions, including its KYC. The central bank said in a statement that the Reserve Bank of India (RBI) by an order dated August 8, 2024 has imposed a monetary penalty of Rs 1.27 crore on Bank of Maharashtra for non-compliance of certain instructions issued by RBI on ‘Credit System for Bank Credit Delivery’, ‘Cyber ​​Security Framework in Banks’ and ‘Know Your Customer’.
After considering the bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found that the allegations against the bank were correct, which justified the imposition of monetary penalty.
Fine also imposed on these
Apart from this, RBI has imposed a monetary penalty of Rs 4.90 lakh on Hinduja Leyland Finance Limited for non-compliance with certain provisions of the Know Your Customer (KYC) Direction, 2016.
RBI also said that this action is based on the deficiency in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.
The central bank has also imposed a monetary penalty of Rs 10 lakh on Poonawalla Fincorp Limited for non-compliance with certain provisions of ‘Non-Banking Financial Company – Systemically Important Non-Deposit Taking Company and Deposit Taking Company (Reserve Bank) Directions, 2016’.
All allegations are correct
After considering the company’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, the RBI found that the following allegations were sustained against the company, which justified the imposition of a monetary penalty, the RBI said in a statement.
The company charged interest on loans from dates prior to the disbursement of these loans, which was contrary to the loan terms explained to the customers.
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