RBI imposes monetary penalty on Shri Ram Finance Corporation Private Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹8.10 lakh on Shri Ram Finance Corporation Private Limited by order dated August 19, 2026. The penalty followed a statutory inspection and a show-cause process in which RBI found the company had breached certain provisions of the RBI’s Governance directions and KYC directions. Specifically, the company did not obtain prior written permission from RBI before appointing a director in a manner that resulted in a change in management, did not maintain a system for classifying customers by risk category, and did not upload KYC records of some customers to the Central KYC Records Registry within the prescribed timeline. RBI stated that the penalty is based on regulatory non-compliance and does not pronounce on the validity of any transaction or agreement, and that it is without prejudice to any other action RBI may initiate.