RBI imposes monetary penalty on Sundaram Home Finance Limited

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1,50,000/- (Rupees One Lakh Fifty Thousand only) on Sundaram Home Finance Limited for non-compliance with certain provisions of the ‘Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016’ issued by RBI.

The penalty has been imposed in the exercise of powers vested in RBI conferred under section 52A of the National Housing Bank Act, 1987.

Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoY

The National Housing Bank has carried out the statutory inspection with reference to its financial position as on March 31, 2022. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the said directions.

After considering the company’s reply to the notice, oral submissions made during the personal hearing, and examination of additional submissions made by it, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty. The company did not carry out periodic updation of KYC of certain customers within the prescribed periodicity.

Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail deposits