Recorded RBI impact
Fine: Rs 10.0 L
Monetary penalty · Fresh imposition
Published by RBI
28 Sept 2021
Case Brief
RBI, by order dated September 28, 2021, imposed a monetary penalty of ₹10 lakh on Amrit Malwa Capital Limited, Jalandhar, Punjab. The penalty was levied for non-compliance with certain provisions of the Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016, after a statutory inspection found that the company had failed to submit certain quarterly and half-yearly returns within the required timelines. RBI issued a show-cause notice, considered the company’s written reply and oral submissions, and concluded that the charge of non-compliance was substantiated. The press release also clarifies that the action is based on regulatory deficiencies and does not pronounce on the validity of any transaction or agreement with customers.
Why RBI Acted
RBI imposed a monetary penalty under section 58G read with section 58B(5)(aa) of the RBI Act, 1934 after a statutory inspection found non-compliance with the Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016. The inspection reports noted, among other things, that the company did not submit certain quarterly and half-yearly returns to RBI within the prescribed time.
Operating Impact
The company must absorb the monetary penalty and address the reporting-control weaknesses identified by RBI. The action does not impose a continuing business restriction, but it signals heightened supervisory scrutiny over its regulatory reporting obligations.
Regulatory Basis
- clause (b) of sub-section (1) of section 58 G
- clause (aa) of sub-section (5) of section 58 B of the Reserve Bank of India Act, 1934
- Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016
Action Facts
- Primary Impact
- Fine: Rs 10.0 L
- Order Date
- 28 Sept 2021
- Effective From
- 28 Sept 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC