Case Brief
RBI, by order dated September 15, 2023, imposed a monetary penalty of Rs 1.20 lakh on Finquest Financial Solutions Private Limited, Mumbai, Maharashtra. The penalty was imposed under Section 58G read with Section 58B(5)(aa) of the RBI Act, 1934 for non-compliance with RBI’s KYC Directions, 2016 and the NBFC Directions, 2016. RBI’s inspection and review of the Risk Assessment Report found lapses in borrower risk categorization, failure to make good the shortfall in the 50% LTV ratio for loans against shares within 7 working days, and failure to report data to all CICs as required. RBI rejected the company’s reply and confirmed the contraventions, leading to the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.20 L
- Entity Type
- NBFC
- Location
- Mumbai, Maharashtra