The Reserve Bank of India has fined HP Financial Services (India) the equivalent of $12,400 for non-compliance – some related to know-your-customer (KYC) measures – and for not having the necessary IT committees.
Printing mistake by RBI – funny currency note issued by ATM.
In a notice [PDF] published on Friday, the Reserve Bank said it had notified HP Financial Services (India) of violations and asked it to argue why a penalty should not be applied, finding its response insufficient.
The full allegations include that HP failed to establish a system to regularly review and update the risk rating of accounts, or explain its risk assessment methodology. It is also alleged to have failed to adequately disclose the interest rates charged, or the reasons why the borrowers vary in interest rates in their loan forms and sanction letters.
The Indian outfit is also said to have failed to form IT strategy and steering committees.
