The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹20 lakh on Dhani Loans and Services Limited for failing to comply with certain provisions of the RBI’s Know Your Customer (KYC) Directions, 2016. This penalty has been levied in accordance with the powers vested in the RBI under the Reserve Bank of India Act, 1934.
The penalty is a result of deficiencies in regulatory compliance and does not pass judgment on the validity of any transactions or agreements entered into by the company with its customers.
Background:
RBI conducted a scrutiny of Dhani Loans and Services Limited to assess its compliance with the KYC directions. The examination of the scrutiny report and related correspondence revealed two key shortcomings:
- Failure to capture live photographs of customers during digital KYC, with the photographs lacking essential information such as the CAF number, GPS coordinates, authorized official’s name, unique employee code assigned by RE, and date and time stamp.
- Failure to assign Unique Customer Identification Codes (UCIC) to individual customers.
Subsequently, the company was issued a notice to explain why a penalty should not be imposed for its failure to adhere to RBI’s directions.
After reviewing the company’s response and additional submissions, the RBI determined that the charges of non-compliance with the aforementioned RBI directions were substantiated, justifying the imposition of a monetary penalty.
By FCCT Editorial Team
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