Case Brief
By an order dated August 14, 2026, RBI imposed a monetary penalty of Rs 6.20 lakh on Northern Arc Capital Limited. The penalty was issued under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934, after a statutory inspection and subsequent supervisory proceedings. RBI sustained two charges: the company did not disclose correct and complete information about customer complaints in its Annual Financial Statements for FY 2024-25, and it failed to auto-escalate certain complaints rejected partly or wholly by its Internal Grievance Redress Mechanism to its Internal Ombudsman, in violation of RBI directions on disclosures in financial statements and on Internal Ombudsman for Regulated Entities.
Action Snapshot
- Primary Impact
- Fine: Rs 6.20 L
- Entity Type
- NBFC
- Action Type