Case Brief
What Happened
RBI imposed a monetary penalty on Northern Arc Capital Limited by order dated January 29, 2026. The penalty was imposed after a statutory inspection and subsequent show-cause process, and the sustained charge was that the company failed to put in place any IT system/software for effective identification and reporting of suspicious transactions. RBI said this amounted to non-compliance with provisions of the Reserve Bank of India [Know Your Customer (KYC)] Directions and imposed the penalty under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.