100s of titles, one news app for just $10 a month.
Dive Deeper:
Paytm tokenises 2.8 cr cards across Visa, Mastercard; to purge saved data by Jun-end
The RBI has set a deadline of 30 June for companies to complete tokenisation.The process involves the replacement of actual…
Apple stops accepting payments for services via Indian debit, credit cards
The move affects recurring payments made in India, and multiple companies have already informed users about this change
LIC public offer to remain open for subscription on Saturday and Sunday
NEW DELHI: LIC public offer will remain open for subscription even on weekend to enable people to participate in the…
DGCA warns airlines of strict action, penalty for wrongly denying boarding to passengers. Read here
DGCA noted that airlines have been indulging in ‘unfair practice’ of denying boarding to passengers, the aviation regulator warned that…
One subscription that gives you access to news from hundreds of sites
Good news for depositors! RBI's rate hike to make FDs attractive. Here's how
RBI surprised markets, experts, borrowers, depositors, and the industry among others by increasing the policy repo rate under the liquidity…
Digital banking units in 75 districts likely to become operational by July
All public sector banks, 10 private sector banks and one small finance bank have initiated the work to have Digital…
Get all your news in one place
Latest Business news:
After $5 Trillion Rout, Emerging Markets Seek Turnaround Signal
The wreckage of a $5 trillion rout in emerging markets is starting to look like a buying opportunity to some…
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
New Zealand PM Ardern to visit U.S. to boost exports, lure tourists
New Zealand Prime Minister Jacinda Ardern will visit the United States this week in a bid to boost exports and…
Rod Sims says Facebook should be forced to negotiate with SBS under news media bargaining code
Despite dozens of deals to pay Australian news publishers for content, social media company has left out SBS and the…
Crypto might have an insider trading problem
Anonymous wallets buy up tokens right before they are listed and sell shortly afterward
Airbus Sees Business Jet Sales Boost Despite War, China Lockdown
Airbus SE’s corporate-jet division is more optimistic about prospects for this year, even as the Russia-Ukraine conflict and Chinese coronavirus…
From analysis to good news, read the world’s best news in one place
Why giving your employees a piece of the pie could boost your business
Employee Stock Ownership Plans hold over $1.6tn in assets and can make a more profitable company and a better place…
Global oil firms report huge profits but Indian marketers are left high and dry
Indian oil refiners are staring at huge losses as they have failed to pass on the higher costs of crude…

RBI imposes penalty on these two financial service providers, here's why

By Livemint
The non-compliance is with RBI's guidelines of ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016’ (REUTERS)

The non-compliance is with RBI's guidelines of ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016’

In a statement, RBI said, "This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers."

The penalty comes after a statutory inspection that the RBI conducted of both the companies concerning their financial position as of March 31, 2020, and the examination of the Risk Assessment Report, Inspection Report, and all related correspondence about the same.

During the inspection, RBI found out both the companies of non-compliance with the aforesaid Directions to the extent delay in reporting fraud to RBI through FMR-1.

Following this, RBI sent a notice to these companies advising them to show cause as to why the penalty should not be imposed on the failure to comply with the RBI directions, as stated therein.

"After considering the company’s reply to the notice, oral submissions made in the personal hearing, and examination of additional submissions made by it, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty," the central bank said for both the companies.

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Paytm tokenises 2.8 cr cards across Visa, Mastercard; to purge saved data by Jun-end
The RBI has set a deadline of 30 June for companies to complete tokenisation.The process involves the replacement of actual…
Apple stops accepting payments for services via Indian debit, credit cards
The move affects recurring payments made in India, and multiple companies have already informed users about this change
LIC public offer to remain open for subscription on Saturday and Sunday
NEW DELHI: LIC public offer will remain open for subscription even on weekend to enable people to participate in the…
DGCA warns airlines of strict action, penalty for wrongly denying boarding to passengers. Read here
DGCA noted that airlines have been indulging in ‘unfair practice’ of denying boarding to passengers, the aviation regulator warned that…
One subscription that gives you access to news from hundreds of sites
Good news for depositors! RBI's rate hike to make FDs attractive. Here's how
RBI surprised markets, experts, borrowers, depositors, and the industry among others by increasing the policy repo rate under the liquidity…
Digital banking units in 75 districts likely to become operational by July
All public sector banks, 10 private sector banks and one small finance bank have initiated the work to have Digital…
Get all your news in one place