Reserve Bank of India imposes monetary penalty on Shriram City Union Finance Limited
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5 lakh on Shriram City Union Finance Limited, Chennai, by an order dated September 23, 2020. RBI said the company had failed to comply with directions on verification of the ownership of gold jewellery and on reporting of frauds under the relevant NBFC Directions, 2016. The penalty followed a statutory inspection, a show-cause notice, and RBI’s review of the company’s reply and submissions.
RBI imposed a monetary penalty under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934, after a statutory inspection of Shriram City Union Finance Limited (with reference to its financial position as on March 31, 2018) revealed non-compliance with RBI directions on verification of the ownership of gold jewellery under the NBFC Directions, 2016, and on reporting of frauds under the Monitoring of Frauds in NBFCs Directions, 2016. RBI considered the company’s reply, oral submissions, and additional submissions before concluding that the contraventions warranted penalty.
Severity Assessment
A monetary penalty of ₹5 lakh falls in the lowest monetary band, and there is no operational restriction beyond the fine.
The company must absorb the financial penalty and remain compliant with RBI’s NBFC directions going forward, especially on gold jewellery ownership verification and fraud reporting. No restriction on operations, lending, or customer activity was announced in this release.
Published as Shriram City Union Finance Limited
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.
© 2026 RegOversight by OddVector