RBI fines Manappuram Finance and IndusInd Bank for non-compliance.
News Mania Desk / Piyal Chatterjee / 21st December 2024
The Reserve Bank of India (RBI) issued fines on IndusInd Bank and Manappuram Finance on Friday totaling Rs 27.3 lakh and Rs 20 lakh, respectively, for noncompliance with regulations. The RBI performed a statutory inspection of the enterprises based on their financial positions as of March 31, 2023.
The penalty on Manappuram Finance was imposed for failing to undertake customer PAN verification at the time of customer acceptance and for allotting multiple identification codes to some customers instead of a Unique Customer Identification Code (UCIC) for each customer.
The RBI stated that the penalty on IndusInd Bank “pertained to the opening of certain savings deposit accounts in the name of ineligible entities. This warranted the imposition of a monetary penalty. The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreements entered into by the bank with its customers.”
Based on supervisory findings of noncompliance with RBI instructions and accompanying correspondence, a notice was issued to the firms, instructing them to show cause why penalties should not be imposed for failing to comply with the aforementioned directions.
After considering the companies’ responses to the notice, additional submissions made by them, and oral submissions made during the personal hearing, the RBI determined that the charge relating to the opening of certain savings deposit accounts in the names of ineligible entities was sustained, resulting in the imposition of monetary penalties.
