Case Brief
RBI imposed a monetary penalty on Hinduja Leyland Finance Limited by order dated August 08, 2024, following supervisory findings from its statutory inspection. The regulator concluded that the company had not complied with certain provisions of the RBI (Know Your Customer (KYC)) Directions, 2016, specifically for not using a robust software mechanism to flag transactions inconsistent with customers’ risk categorization and updated profiles, thereby weakening suspicious transaction identification and reporting. The penalty was imposed under the Reserve Bank of India Act, 1934 after consideration of the company’s reply, oral submissions, and additional submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 49,000
- Entity Type
- NBFC
- Action Type