Case Brief
The Reserve Bank of India imposed a monetary penalty on Mercedes-Benz Financial Services India Private Limited, formerly Daimler Financial Services India Private Limited, Pune, Maharashtra. The action followed a statutory inspection that found non-compliance with certain provisions of the RBI (Know Your Customer) Direction, 2016, specifically that the company failed to carry out ongoing due diligence and did not undertake periodic updation of KYC for its high-risk customers as of March 31, 2021. RBI issued a show-cause notice, considered the company’s reply and hearing submissions, and concluded that the contravention was substantiated.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- NBFC
- Location
- Pune, Maharashtra