RBI imposes monetary penalty on Family Home Finance Private Limited, Mumbai, Maharashtra

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹50,000/-
(Rupees Fifty Thousand only) on Family Home Finance Private Limited, Mumbai, Maharashtra for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)'.

The penalty was imposed in exercise of powers vested in RBI under section 52A of the National Housing Bank Act, 1987. A statutory inspection of the company was conducted by the National Housing Bank with reference to its financial position as on March 31, 2022 and March 31, 2023.

Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

The charges against the company were sustained, warranting imposition of monetary penalty, including:

• Failure to conduct risk categorisation of customers


• Failure to conduct review of risk categorisation of customers


• Failure to conduct periodic updation of KYC of customers

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.