The RBI has imposed monetary penalty on 3 financial institutions – Five Star Business Finance Limited, Can Fin Homes Limited and Pahal Financial Services Private Limited.
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹6.20 lakh on Five Star Business Finance Limited for non-compliance with KYC directions. The penalty was imposed as:
- The company failed to put in place a robust software for effective identification and reporting of suspicious transactions; and
- The company failed to disclose the approach for gradation of risk and rationale for charging different rate of interest to different categories of borrowers in the application forms and the sanction letters.
The RBI imposed a monetary penalty of ₹2.70 lakh on Can Fin Homes Limited as the company failed to clearly indicate the bifurcation between interest and principal in the loan instalments collected from borrowers.
The RBI imposed a monetary penalty of ₹3.10 lakh on Pahal Financial Services Private Limited as the company failed to put in place a robust software for effective identification and reporting of suspicious transactions.
