Case Brief
What Happened
RBI, by order dated September 20, 2023, imposed a monetary penalty of ₹8.80 lakh on Fedbank Financial Services Limited, Mumbai. The penalty arose from non-compliance with the Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016, after RBI's inspection found that the company had reported a fraud to RBI with delay. RBI issued a show-cause notice, examined the company's response and oral submissions, and concluded that the violation was substantiated, warranting the penalty under the RBI Act, 1934.