RBI Imposed Monetary Penalty on Dhani Loans and Services Limited; Check Details

RBI Imposed Monetary Penalty on Dhani Loans and Services Limited; Check Details The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.7.60 lakh on Dhani Loans and Services Limited for non-compliance with RBI Directions.

As Per RBI Press Release:

The RBI has imposed a monetary penalty of ₹7.60 lakh (Rupees Seven lakh and sixty thousand only) on Dhani Loans and Services Limited, Gurugram (the company) for non-compliance with the "Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016” issued by RBI by an order dated July 06, 2022. This penalty has been imposed in exercise of powers vested in RBI under the provisions of 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. This action is based on the lack of regulatory compliance and is not meant to judge the legality of any deal or arrangement the company has with its clients. Background The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2020 and examination of the Risk Assessment Report, Inspection Report and all related correspondence pertaining to the same revealed, inter alia, non-compliance with the aforesaid RBI directions to the extent of the company’s failure to ensure categorization of customers based on risk assessment and risk perception. In furtherance to the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the RBI directions, as stated therein. The RBI came to the opinion that the charge of noncompliance with the aforementioned RBI directions was proved and required imposition of a monetary penalty after taking into account the company's response to the notice and examining other submissions made by it.