RBI Penalises Repco Home Finance, IIFL Samasta And True Credits For Regulatory Lapses

The Reserve Bank of India (RBI) on Friday imposed monetary penalties on Repco Home Finance Ltd, IIFL Samasta Finance Ltd and True Credits Pvt. Ltd for separate instances of non-compliance with regulatory directions.

The highest penalty, amounting to Rs. 3.90 lakh, was imposed on IIFL Samasta Finance Ltd for violations of RBI directions on Know Your Customer (KYC) norms and fraud risk management for NBFCs.

The RBI found that the company had failed to put in place a robust system for identifying and reporting suspicious transactions. It had also disclosed incorrect details of frauds reported in its financial statements for FY 2024-25.

In a separate order, the RBI imposed a penalty of Rs. 70,000 on Repco Home Finance Ltd for non-compliance with directions relating to the Fair Practices Code. According to the regulator, the company failed to disclose in its application forms and sanction letters its risk gradation approach and the rationale for charging different interest rates to different categories of borrowers.

The RBI also levied a penalty of Rs. 3.10 lakh on True Credits Pvt. Ltd for violating KYC directions by failing to carry out Enhanced Due Diligence (EDD) for certain customers onboarded through non-face-to-face modes.

In all three orders, the RBI clarified that the penalties were based on deficiencies in regulatory compliance and were not intended to pronounce upon the validity of any transaction or agreement entered into by the companies with their customers.

The regulator further stated that the penalties were without prejudice to any other action that may be initiated against the entities.

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

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

Click here to read the circular on the RBI's penalty on True Credits Pvt. Ltd.