The IndusInd Bank and Manappuram Finance were fined by the Reserve Bank of India ( RBI ) for the violation of interest rate directions and KYC directions respectively issued by the apex bank.
The RBI has imposed a monetary penalty of Rs. ₹27.30 lakh (Rupees Twenty-Seven Lakh and Thirty Thousand only) on IndusInd Bank Ltd and ₹20,00,000/- (Rupees Twenty Lakh only) on Manappuram Finance Limited.
The apex bank conducted a Statutory Inspection for Supervisory Evaluation (ISE 2023) based on its financial position as of March 31, 2023 on both Indusind and Manappuram Finance.
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After reviewing the bank’s response, additional submissions, and oral arguments, RBI found that the charge of opening savings deposit accounts for ineligible entities was substantiated, necessitating a monetary penalty on IndusInd Bank.
Further, after reviewing Manappuram Finance’s response and oral submissions, RBI sustained charges related to the failure to verify customer PANs using the issuing authority’s verification facility and the allocation of multiple identification codes instead of a Unique Customer Identification Code (UCIC) for certain customers.
Consequently, the apex bank imposed a monetary penalty for these regulatory deficiencies, without affecting the validity of any transactions or agreements and without prejudice to further actions that may be taken by RBI.
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