RBI imposes monetary penalty on Berar Finance Limited, Nagpur, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty on Berar Finance Limited, Nagpur by order dated December 07, 2023. The penalty was for non-compliance with certain provisions of the RBI’s Know Your Customer Directions, 2016. RBI’s inspection found that the company had not set up a system for periodic review of risk categorisation of accounts and had not put robust software in place for effective identification and reporting of suspicious transactions. RBI issued a show-cause notice, considered the company’s reply and submissions, and then confirmed that the contraventions were substantiated. The penalty was imposed under section 58G read with section 58B(5)(aa) of the RBI Act, 1934.