RBI imposes monetary penalty on Belstar Microfinance Limited, Chennai

Case Brief

RBI imposed a monetary penalty on Belstar Microfinance Limited by order dated May 9, 2024. The action followed a statutory inspection and supervisory findings that the company had outsourced decision-making functions for determining compliance with KYC norms to certain outsourced agents, contrary to the RBI (Know Your Customer (KYC)) Direction, 2016. RBI said the penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.