Case Brief
What Happened
RBI imposed a monetary penalty on Early Salary Services Private Limited, Pune, by order dated September 15, 2023. The company was found to have failed to put in place a system of internal audit for all outsourced activities, breaching the Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016. RBI issued a show-cause notice after a supervisory visit/scrutiny, considered the company’s reply and submissions, and then concluded that the contravention was substantiated and warranted the penalty.