Mumbai: The Reserve Bank of India (RBI) on Friday said it has imposed a penalty on Progfin and Shri Ram Finance for non-compliance with certain provisions and directions.The central bank imposed a Rs 8.10 lakh monetary penalty on Shri Ram Finance Corporation, and Rs 2.70 lakh on Progfin, a release said.Shri Ram Finance Corporation was penalised as it "failed to take prior written permission of the RBI while appointing a director, resulting in a change in management, on account of a change in more than 30 per cent of its directors, excluding independent directors", it added.The company was also penalised as it failed to put in place a system to categorise its customers as low, medium and high risk category; and failed to upload KYC records of certain customers onto Central KYC Records Registry within the prescribed timeline, the RBI said.Progfin faced a penalty as the company failed to put in place a system of periodic review of risk categorisation of accounts, with such periodicity being at least once in six months, the release said.
RBI imposes penalty on Progfin, Shri Ram Finance Corporation for non-compliance
The Reserve Bank of India recently levied fines on two financial firms for regulatory failures. Shri Ram Finance Corporation was penalized Rs 8.10 lakh due to management transitions and a lack of proper risk classification for clients. Meanwhile, Progfin incurred a Rs 2.70 lakh fine for failing to conduct timely risk reviews. Both penalties highlight the significance of compliance with established regulations.







