RBI imposes penalties on IndusInd Bank and Manappuram Finance for non-compliance.

A fine of Rs 27.30 lakh has been imposed on IndusInd Bank for non-compliance with certain provisions of the code relating to ‘interest on deposits’, the Bank said on Friday.

The RBI has conducted a statutory audit to assess the bank’s supervision regarding its financial position from March 31, 2023, and had issued a notice to private sector lenders.

After considering IndusInd Bank’s response to the notice, additional submissions made by it, the RBI said, it found, inter alia, that the charge relating to the opening of certain savings deposit accounts in the name of ineligible entities has been enhanced, warranting the levy of fees. penalty.

The RBI, however, added that the penalty is based on lapses in compliance and is not intended to dictate the validity of any transaction entered into by IndusInd Bank with its customers.

RBI penalizes Manappuram Finance for not following KYC norms

The Reserve Bank has imposed a penalty of Rs 20 lakh on Manappuram Finance for non-compliance with certain provisions of Know Your Customer (KYC) norms.

The RBI said that a statutory audit of the NBFC (non-banking financial company) was conducted with reference to its financial position as on March 31, 2023 and a notice was issued to the company.

After considering Manappuram Finance’s response to the notice, the RBI said, the company failed to perform customer PAN verification at the issuing authority’s verification point at the time of customer acceptance.

Also, assign multiple identification codes to certain customers instead of a Unique Customer Identification Code (UCIC) for each customer.

The punishment was issued in an order dated December 16.

The RBI also added that the action against the company is based on deficiencies in regulatory compliance and is not intended to dictate the legality of any transaction or agreement entered into by Manappuram Finance.