Case Brief
What Happened
RBI, by order dated March 24, 2025, imposed a monetary penalty on KLM Axiva Finvest Limited for non-compliance with RBI requirements on declaration of dividends under the Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023. RBI said the company declared a dividend for FY 2023-24 despite not meeting the minimum prudential requirements in each of the last three financial years. The penalty was imposed after a show-cause notice, the company’s reply, and oral submissions at a personal hearing.