RBI Imposes Penalties On Appnit Technologies, IIFL Finance For Regulatory Compliance Lapses

The Reserve Bank of India on Friday imposed monetary penalties on Appnit Technologies Private Limited and IIFL Finance Limited for separate regulatory compliance lapses.

The RBI imposed a ₹5.8 lakh penalty on Appnit Technologies for non-compliance with directions relating to Know Your Customer norms and Prepaid Payment Instruments.

It found that the company had allowed PPI accounts opened using Aadhaar OTP-based e-KYC to continue for more than one year without carrying out customer identification as required under the KYC Directions.

The company also failed to put in place a system for periodic review of the risk categorisation of accounts.

Separately, the central bank imposed a ₹3.1 lakh penalty on non-banking finance company IIFL Finance for failing to pay certain borrowers the surplus amount realised from auctions of pledged gold articles over and above their outstanding loan dues.

RBI said the penalties were based on deficiencies in statutory and regulatory compliance and did not amount to a finding on the validity of any customer transaction or agreement.

Click here to read the circular on RBI's penalty on Appnit Technologies

Click here to read the circular on RBI's penalty on IIFL Finance Limited