RBI imposes monetary penalty on Indiabulls Commercial Credit Limited, New Delhi

Case Brief

RBI imposed a monetary penalty of Rs 12.35 lakh on Indiabulls Commercial Credit Limited, New Delhi, by order dated September 07, 2022. The penalty was for non-compliance with certain provisions of the RBI (Know Your Customer) Directions, 2016, after inspection and subsequent proceedings found that the company failed to allot UCIC to individual customers and did not categorise customers based on its assessment and risk perception. RBI stated that the penalty was imposed under the RBI Act, 1934 and that the action was based on regulatory deficiencies, not on the validity of any customer transaction or agreement.