Case Brief
The Reserve Bank of India imposed a monetary penalty on Nuvama Wealth Finance Limited (formerly Edelweiss Finance and Investments Limited), Mumbai, by order dated March 06, 2023. The penalty was for non-compliance with certain provisions of the RBI (Know Your Customer) Directions, 2016. RBI said its inspection revealed that the company had failed to put in place robust software for effective identification and reporting of suspicious transactions. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934, after considering the company's reply, additional submissions, and oral submissions at personal hearing. RBI clarified that the action was based on regulatory deficiencies and did not pronounce on the validity of any transaction or agreement with customers.
Action Snapshot
- Primary Impact
- Fine: Rs 96,000
- Entity Type
- NBFC
- Location