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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹9.60 lakh on Nuvama Wealth Finance Limited (formerly known as Edelweiss Finance and Investments Limited) for non-compliance with the RBI (Know Your Customer (KYC)) Directions, 2016.
The penalty has been imposed under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58 B of the RBI Act, 1934, in exercise of RBI’s regulatory powers. The action is based on deficiencies in regulatory compliance and is not intended to question the validity of any transaction or agreement entered into by the company with its customers.
Background:
A statutory inspection of the company, with reference to its financial position as on March 31, 2021, revealed that the company failed to implement robust software for effective identification and reporting of suspicious transactions. Following this, RBI issued a show-cause notice to the company, seeking explanation for the non-compliance.
[RBI]