RBI Fines Hongkong & Shanghai Banking for KYC Violations

Mumbai, Feb 28 (PTI) The RBI on Friday said it has imposed a penalty of Rs 66.6 lakh on The Hongkong and Shanghai Banking Corporation Limited for non-compliance with certain directions including those related to 'Know Your Customer' and 'Interest Rates on Deposits'.

A penalty of Rs 33.1 lakh has also been imposed on IIFL Samasta Finance Limited for non-compliance with certain provisions of the 'Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016' and Know Your Customer (KYC) Directions.

In both cases, RBI said penalties were based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.