Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1.00 lakh on GoCapital Finance Limited, Chennai, Tamil Nadu, for non-compliance with certain provisions of the Master Direction on NBFC Scale Based Regulation, 2023. RBI found that the company failed to obtain prior written permission before effecting a change in management that led to a change of more than 30% of its directors, excluding independent directors. The penalty was imposed after considering the company’s reply and oral submissions in a personal hearing, and RBI stated that the action is based on regulatory deficiency and does not pronounce on the validity of transactions with customers.