RBI Imposes Rs9.60 Lakh Penalty on Nuvama Wealth Finance for Violating KYC Norms
Moneylife Digital Team 11 March 2023
Reserve Bank of India (RBI) has imposed a fine of Rs9.60 lakh on Nuvama Wealth Finance Ltd (erstwhile Edelweiss Finance and Investment Ltd) for violating certain provisions of know your customer (KYC) directions.
The inspection report of Nuvama Wealth Finance, based on its financial position till 31 March 2021, revealed that the company failed to put in place robust software for effective identification and reporting of suspicious transactions.
In a release, the central bank says, “After considering the reply of banks to the notices, submissions made during the personal hearing and additional information pursuant to personal hearing, RBI came to the conclusion that the charge of non-compliance with the directions was substantiated and warranted imposition of monetary penalty.”
A notice was issued to the company advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions. After the perusal of records and hearing, RBI imposed a monetary penalty of Rs9.60 lakh.
The penalty, according to RBI is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered by the company with its customers.
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