RBI imposes consequences on Federal Financial institution, Financial institution of India

MUMBAI: Reserve Financial institution of India (RBI) on Friday stated it has imposed a penalty of Rs 5.72 crore on Federal Financial institution for deficiencies in regulatory compliance.
A penalty of Rs 70 lakh has additionally been imposed on Financial institution of India for non-compliance with positive provisions of Know Your Buyer (KYC) norms and directions on ‘compliance serve as in banks’ issued via RBI, it stated in a remark.
About Federal Financial institution, RBI stated the financial institution didn’t be sure that no incentive (coins or non-cash) used to be paid to its workforce engaged in insurance coverage broking/company company services and products via the insurance coverage corporate, in keeping with a separate remark.
RBI had performed Statutory Inspection for Supervisory Analysis (lSE) of the financial institution with regards to its monetary place as on March 31, 2020.
In any other remark, RBI stated a tremendous of Rs 7.6 lakh has been imposed on Dhani Loans and Services and products Restricted, Gurugram for non-compliance with KYC norms.
RBI stated the penalities are in keeping with the deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into via the 2 banks and Dhani Loans and Services and products with their consumers.