RBI imposes monetary penalty on Sundaram Home Finance Limited
Case Brief
By an order dated May 09, 2024, RBI imposed a monetary penalty of Rs 1,50,000 on Sundaram Home Finance Limited under section 52A of the National Housing Bank Act, 1987. The penalty followed a statutory inspection and supervisory findings that the company had not carried out periodic updation of KYC for certain customers within the prescribed periodicity under the RBI (Know Your Customer (KYC)) Direction, 2016.
RBI imposed a monetary penalty under section 52A of the National Housing Bank Act, 1987 after supervisory inspection findings showed non-compliance with the RBI (Know Your Customer (KYC)) Direction, 2016. The sustained charge was that Sundaram Home Finance Limited did not carry out periodic updation of KYC of certain customers within the required time period.
Severity Assessment
The action is a monetary penalty of Rs 1.5 lakh, which falls within the lowest monetary band and carries no broader operational restriction.
The company must absorb the penalty and strengthen its KYC periodic updation controls to avoid further regulatory action. The order does not invalidate customer transactions or agreements, but RBI has expressly kept open the possibility of additional action for the same or related deficiencies.
Published as Sundaram Home Finance Limited
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