RBI: The Reserve Bank of India (RBI) establishes guidelines and policies in the banking and financial industry. All organizations are required to adhere to these. Otherwise, the RBI will enforce a significant fine. The Reserve Bank aims to safeguard customer interests and maintain economic stability. In this regard, it carries out inspections occasionally. The RBI has recently surprised two institutions that failed to adhere to the regulations. IndusInd Bank and Manappuram Finance organizations. The RBI has levied a substantial fine for not adhering to certain regulations concerning deposit interest rates and Know Your Customer (KYC) guidelines.
IndusInd Bank penalized by RBI
According to media report, IndusInd Bank has been penalized Rs. 27.30 lakh for entities that are ineligible. This is a result of failing to adhere to the standards concerning deposit interest rates. The RBI’s examination to evaluate the bank’s financial state as of March 31, 2023, uncovered several significant shortcomings. Specifically, the RBI found infractions like the establishment of savings accounts for unqualified entities.
The RBI had originally released a notice to IndusInd Bank. Upon reviewing the clarification and supplementary details from the bank, it chose to apply the penalty.
Manappuram Finance also penalized
The RBI has imposed a penalty of Rs 20 lakh on Manappuram Finance, a Non-Banking Financial Company (NBFC). The primary cause of this is failure to adhere to KYC regulations. The RBI inspection, which reviewed the company’s financial status as of March 31, 2023, highlighted several important points.
Why Manappuram Finance
found guilty?
Manappuram Finance was discovered to have inadequately verified the details of the PAN card (PAN). Additionally, it breached the regulation concerning the distribution of Unique Customer Identification Codes (UCIC). The RBI discovered that certain customers utilized multiple UCIC codes.
Disclaimer : For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.