The central banking authority on Friday announced that it has imposed a monetary penalty of Rs63.6 lakh on a public sector lender for non-compliance with certain provisions of the Fair Practices Code for Lenders and Know Your Customer (KYC) norms. In a separate action, a penalty of Rs3.1 lakh was imposed on a housing finance company for violations related to KYC guidelines. According to an official statement, a statutory inspection was conducted for supervisory evaluation of the public sector lender with reference to its financial position as on March 31, 2025. Following the inspection, a notice was issued seeking an explanation. After examining the response, the regulator observed that the lender had charged interest at rates higher than those contractually agreed upon in certain loan accounts. It was also found that KYC records of some customers were not uploaded to the Central KYC Records Registry within the prescribed timeline, amounting to regulatory non-compliance. In another statement, the regulator said that a statutory inspection of the housing finance entity was carried out by the sectoral supervisory authority, again with reference to its financial position as on March 31, 2025. A notice was issued in this case as well. The inspection revealed that the entity failed to establish a system for periodic review of customer risk categorisation, which is required to be conducted at least once every six months under existing guidelines. In both instances, the regulator clarified that the penalties were imposed solely due to deficiencies in regulatory compliance. It further stated that these actions do not affect the validity of any transactions or agreements entered into by the entities with their customers.