RBI imposes monetary penalty on Family Home Finance Private Limited, Mumbai, Maharashtra

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹50,000 on Family Home Finance Private Limited, Mumbai, Maharashtra, for non-compliance with certain RBI directions on Know Your Customer (KYC). The penalty was imposed under section 52A of the National Housing Bank Act, 1987, following a statutory inspection by the National Housing Bank and a subsequent show-cause notice. RBI found that the company had not conducted risk categorisation of customers, reviewed risk categorisation, or performed periodic updation of KYC. The release notes that the penalty is based on regulatory compliance deficiencies and does not pronounce on the validity of the company’s transactions or agreements, and that other action may still be initiated.