RBI imposed Rs.10 Lakh monetary penalty on Mercedes-Benz Financial Services:

RBI imposed Rs.10 Lakh monetary penalty on Mercedes-Benz Financial Services The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.10 lakh on Mercedes-Benz Financial Services India Private Limited (formerly known as Daimler Financial Services India Private Limited) for non-compliance with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016. RBI conducted a statutory inspection of the company with reference to its financial position as of March 31, 2021, and examination of the Risk Assessment Report, Inspection Report, Supervisory Letter, and all related correspondence pertaining to the same revealed, among other things, that the company failed to carry out on-going due diligence of its customers by failing to undertake the periodic updation of KYC of its high risk customers as of March 31, 2021. As a result, the company was served with a notice requiring it to show cause why a penalty should not be levied for failing to comply with the RBI's orders, as specified therein. After reviewing the company's response to the notice, supplementary submissions made by it, and oral comments made during the personal hearing, the RBI determined that the charge of non-compliance with the aforementioned RBI orders was proven and warranted the imposition of monetary penalty. This penalty was imposed in accordance with the requirements of paragraph (b) of sub-section (1) of Section 58G and clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934. This action is based on regulatory compliance problems and is not intended to rule on the legitimacy of any transaction or agreement entered into by the company with its consumers.