Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
6 May 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty on KKR India Financial Services Limited, Mumbai by order dated May 05, 2022. The penalty was for non-compliance with RBI’s Monitoring of Frauds in NBFCs Directions, 2016, after inspection findings showed delay in reporting frauds to RBI through FMR-1 and a DO letter. RBI said the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any transaction or agreement with customers.
Why RBI Acted
RBI imposed a monetary penalty after a statutory inspection found that the company had not complied with the Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016. The inspection and related examination revealed delay in reporting frauds to RBI through FMR-1 and through a DO letter. After considering the company’s reply, oral submissions, and additional submissions, RBI concluded that the charge of non-compliance was substantiated and warranted penalty under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.
Operating Impact
KKR India Financial Services Limited must bear the Rs 5 lakh penalty. The order does not impose an operational restriction, but it signals regulatory censure for weaknesses in fraud reporting compliance and may increase scrutiny of its future reporting practices.
Regulatory Basis
- clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58 B of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 5 May 2022
- Effective From
- 5 May 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC