Manappuram Finance allotted multiple identification codes to some customers instead of a Unique Customer Identification Code (UCIC) for every customer.
The Reserve Bank of India (RBI) on Friday imposed a hefty penalty on private sector leading IndusInd Bank and Manappuram Finance. The central bank has imposed a penalty of Rs 27.30 lakh on IndusInd Bank for non-compliance with certain provisions of norms relating to ‘interest rates on deposits’. Similarly, RBI has imposed a fine of Rs 20 lakh on Manappuram Finance for non-compliance with certain provisions of Know Your Customer (KYC) norms, PTI reported.
Action on IndusInd Bank
According to the news, the Reserve Bank had conducted a statutory inspection for supervisory assessment of the bank with reference to its financial position as on March 31, 2023 and issued a notice to IndusInd Bank. After considering IndusInd Bank’s reply to the notice and additional submissions made by it, RBI said it found that, inter alia, the allegations relating to opening of certain savings deposit accounts in the name of ineligible entities were sustained, leading to It was appropriate to impose monetary penalty. However, RBI said the penalty is based on deficiencies in regulatory compliance. It is not intended to pass judgment on the validity of any transaction or agreement entered into by IndusInd Bank with its customers.
This matter is regarding Manappuram Finance
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. RBI said that a statutory inspection 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, RBI said, the company failed to verify the customers’ PAN from the verification facility of the issuing authority at the time of customer acceptance.
Manappuram Finance allotted multiple identification codes to some customers instead of a Unique Customer Identification Code (UCIC) for every customer. The penalty has been imposed by order dated December 16. The RBI also said that the action against the company is based on deficiencies in regulatory compliance and is not intended to adjudicate on the validity of any transaction or agreement entered into by Manappuram Finance.
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