The Reserve Bank of India (RBI) announced on May 10 that it has levied monetary penalties on Belstar Microfinance and Sundaram Home Finance for regulatory breaches.
In a statement, the central bank disclosed that it imposed a penalty of Rs 3.10 lakh on Belstar Microfinance and Rs 1.50 lakh on Sundaram Home Finance.
Regarding Sundaram Home Finance, the penalty was imposed due to the company’s failure to conduct periodic updates of KYC for certain customers within the stipulated intervals, as stated in the release.
Additionally, Belstar Microfinance incurred the penalty as it delegated decision-making responsibilities for ensuring compliance with KYC norms to external agents, as mentioned in the release.
