Excerpt from Asian News International Article, Published on Sep 14, 2024.
The Reserve Bank of India (RBI) has penalized three non-banking financial companies (NBFCs) for non-compliance with regulatory directives. The companies fined include Hewlett Packard Financial Services (India) Private Limited, SMFG India Credit Company Limited, and Muthoot Vehicle & Asset Finance Limited.
These penalties, imposed between September 3 and September 11, 2024, were for lapses in adhering to RBI’s ‘Know Your Customer (KYC)’ guidelines, liquidity risk management framework, and other regulatory requirements. Hewlett Packard Financial Services faced a penalty of Rs 10,40,000 for non-compliance, including failing to conduct IS audits and monitoring outsourced vendors. SMFG India Credit Company Limited was fined Rs 23,10,000 for various violations. Muthoot Vehicle & Asset Finance Limited received a penalty of Rs 7,90,000 for not disclosing its Liquidity Coverage Ratio and other lapses.
The RBI clarified that these penalties were issued based solely on deficiencies in regulatory compliance, not as judgments on specific transactions. These actions highlight the importance of strict adherence to RBI guidelines by NBFCs to avoid penalties and maintain regulatory compliance. Further actions may be taken against these companies if necessary. This move underscores RBI’s commitment to enforcing compliance within the NBFC sector.
To delve deeper into this topic, please read the full article on Asian News International.
