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The Reserve Bank of India (RBI) has, by an order dated September 07, 2022, imposed a financial penalty of ₹12.35 lakh (Rupees Twelve lakh and thirty-5 thousand solely) on Indiabulls Commercial Credit Limited, New Delhi (the corporate) for non-compliance with sure provisions of the “Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016”. This penalty has been imposed in train of powers vested in RBI underneath the provisions of clause (b) of sub-part (1) of part 58 G learn with clause (aa) of sub-part (5) of part 58 B of the Reserve Bank of India Act, 1934. This motion is predicated on the deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the corporate with its clients. Background The statutory inspection of the corporate was performed by RBI on the subject of its monetary place as on March 31, 2020 and examination of the Risk Assessment Report, Inspection Report, supervisory letter and all associated correspondence pertaining to the identical revealed, inter alia, the corporate’s failure to (i) allot Unique Customer Identification Code (UCIC) to its particular person clients and (ii) perform categorisation of clients based mostly on its evaluation and threat notion. In furtherance to the identical, a discover was issued to the corporate advising it to indicate trigger as to why penalty shouldn’t be imposed on it for failure to adjust to the RBI instructions, as said therein. After contemplating the corporate’s reply to the discover, examination of further submissions made by it and oral submissions made in the course of the private listening to, RBI got here to the conclusion that the costs of non-compliance with the aforesaid RBI instructions had been substantiated and warranted imposition of financial penalty. (Yogesh Dayal) Press Release: 2022-2023/853 |
