Case Brief
What Happened
By an order dated February 10, 2025, RBI imposed a monetary penalty on Shriram Finance Limited following supervisory findings from a statutory inspection conducted with reference to its financial position as on March 31, 2023. After issuing a show-cause notice and considering the company’s replies and oral submissions, RBI held that the company had failed to maintain periodic review of risk categorisation of accounts, did not ensure certain Direct Sales Agent agreements contained RBI inspection-rights clauses, and did not share relationship-segment information for corporates with Credit Information Companies during FY 2022-23. The penalty was imposed under statutory powers in the RBI Act, 1934 and the Credit Information Companies (Regulation) Act, 2005.