Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹10 lakh on Daimler Financial Services India Private Limited, Pune, Maharashtra, by order dated May 19, 2021. RBI said the company had failed to comply with certain provisions of the Reserve Bank Commercial Paper Directions, 2017 and the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, as revealed during a statutory inspection with reference to its financial position as on March 31, 2019. After issuing a show-cause notice, considering the company’s reply, oral submissions, and additional submissions, RBI concluded that the charge of non-compliance was substantiated and warranted the penalty. RBI also clarified that the action was based on regulatory compliance deficiencies and was not intended to pronounce upon the validity of any transaction or agreement with customers.