Case Brief
What Happened
RBI imposed a monetary penalty of ₹13.60 lakh on Indostar Capital Finance Limited by order dated February 21, 2024. The company was found non-compliant with the Monitoring of Frauds in NBFCs Directions and certain provisions of the RBI KYC Directions, after a statutory inspection and subsequent show-cause process. RBI’s findings included inadequate software-based alerts for suspicious transaction identification, delayed periodic KYC updation for high-risk customers, and delayed reporting of certain frauds above ₹1 lakh.