Case Brief
By an order dated September 2, 2024, RBI imposed a monetary penalty on Housing and Urban Development Corporation Limited after finding non-compliance with certain provisions of the RBI KYC Direction, 2016 and the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021. The violations included failure to risk-categorize customers and periodically review that categorization, as well as failure to create and register a floating charge on assets invested in favour of depositors under Section 29B of the NHB Act. The penalty was imposed under Section 52A of the National Housing Bank Act, 1987 following supervisory inspection, notice, reply, and personal hearing.
Action Snapshot
- Primary Impact
- Fine: Rs 3.50 L
- Entity Type
- NBFC
- Action Type