Case Brief
What Happened
By an order dated August 26, 2021, RBI imposed a monetary penalty of ₹5 lakh on Seyad Shariat Finance Limited, Tirunelveli, Tamil Nadu, for non-compliance with the RBI (Know Your Customer (KYC)) Directions, 2016. The statutory inspection found that the company failed to ensure categorization of customers based on risk assessment and risk perception. RBI issued a show-cause notice, considered the company's response, and then concluded that the contravention was substantiated under the RBI Act, 1934.