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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2,10,000 (Rupees Two Lakh Ten Thousand only) on Cent Bank Home Finance Limited for non-compliance with certain provisions of the RBI (Know Your Customer (KYC)) Directions, 2016.
The penalty follows findings from the statutory inspection conducted by the National Housing Bank with reference to the company’s financial position as of March 31, 2022. A notice had been issued to the company seeking explanation for lapses in compliance.
After reviewing the company’s submissions and holding a personal hearing, RBI found that Cent Bank Home Finance Limited failed to carry out periodic review of risk categorisation of accounts, which is required at least once every six months during FY 2021-22.
RBI clarified that the action is based on regulatory compliance deficiencies and does not question the validity of any transactions or agreements entered into by the company with its customers. The imposition of the penalty is also without prejudice to any further action that RBI may take against the company.
[RBI]