India, Oct. 6 -- The Reserve Bank of India (RBI) has levied a monetary penalty of Rs 4.20 lakh on HDB Financial Services Ltd for non-compliance with provisions of the RBI (Know Your Customer) Directions, 2016. The penalty was imposed under the powers granted by the Reserve Bank of India Act, 1934.
The RBI's inspection, based on the company's financial position as of March 31, 2024, found that the company failed to obtain PAN, equivalent e-document, or Form 60 for certain loan accounts disbursed during FY 2023-24.
The penalty follows issuance of a show-cause notice, consideration of the company's reply and oral submissions, and is strictly related to regulatory compliance. RBI clarified that this action does not affect the validity of any ...