Money Matters—So Does Due Diligence: Transcorp Hit with RBI Fine

Image Source: Mint

The Reserve Bank of India (RBI) imposed a fine of ₹1.5 million (₹15 lakh) on Transcorp International Ltd. (BSE: TRNS.BO) for non-compliance with regulations. The penalty was imposed under the Foreign Exchange Management Act (FEMA) and RBI Master Directions for Authorized Dealer Category-II license holders.

Key Details

Nature of Violation: The RBI charged violations of KYC, AML, and CFT regulations under the Money Transfer Service Scheme (MTSS).
Background: Transcorp, a former big player in cross-border remittances, was found to have severe lapses in mandatory reporting and due diligence during its business before selling its MTSS business in 2018.
Regulatory Action: The penalty follows an enforcement review and inspection by the RBI, which found the company to be non-compliant with compliance norms specified.

About Transcorp International

Listed Entity: Listed on BSE NBFC and forex services provider
Previous Operations: Previously held Authorized Dealer Category-II license and was a primary MTSS agent
Current Developments: The group has fallen under the radar of enforcement authorities, with a previous ₹7,272 crore FEMA show-cause notice by the Enforcement Directorate in 2022.

Sources: Economic Times, Face of India, RBI Press Releases