Mumbai. On Friday, the Reserve Bank said it had imposed a penalty of Rs 1.27 crore on the Bank of Maharashtra (BoM) for violating its directions, including on its KYC. The Reserve Bank of India (RBI), by an order dated August 8, 2024, has imposed a monetary penalty of Rs 1.27 crore on the Bank of Maharashtra for non-compliance of specific directions issued by the RBI on 'credit system for bank credit delivery', 'cyber security framework in banks' and 'know your customer', the central bank said in a statement.

After considering the bank's reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found that the allegations against the bank were substantiated, justifying the imposition of monetary penalty.

They were also fined.

• Further, RBI has imposed a monetary penalty of Rs 4.90 lakh on Hinduja Leyland Finance Limited for non-compliance with certain provisions of the Know Your Customer (KYC) Directions, 2016.
• RBI also said that this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.
• The central bank has also imposed a monetary penalty of Rs 10 lakh on Poonawalla Fincorp Ltd for non-compliance with certain provisions of the 'Non-Banking Financial Company - Systemically Essential Non-Deposit Taking Company and Deposit Taking Company (Reserve Bank) Directions, 2016'.

All allegations are correct

• After considering the company's reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, the RBI found that the following charges were sustained against the company which justified imposition of monetary penalty, RBI said in a statement.
• The company charged interest on the loans from dates prior to the disbursement of these loans, which was contrary to the loan terms explained to the customers.