Recorded RBI impact
Fine: Rs 3.10 L
Monetary penalty · Fresh imposition
Published by RBI
31 Jan 2025
Case Brief
By an order dated January 20, 2025, RBI imposed a monetary penalty of ₹3.10 lakh on Aptus Finance India Private Limited. RBI said the company had not complied with certain provisions of the NBFC Directions, 2016 relating to governance issues. The specific sustained violation was failure to obtain prior written RBI permission before effecting a change in management that resulted in a change of more than 30% of its directors, excluding independent directors. The penalty was imposed under the RBI Act, 1934, and RBI clarified that the action is based on regulatory compliance deficiencies and does not pronounce on the validity of any transaction or agreement entered into by the company.
Why RBI Acted
RBI imposed a monetary penalty under Section 58G read with Section 58B of the RBI Act, 1934 after finding that Aptus Finance India Private Limited did not comply with certain provisions of the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, specifically governance-related directions. The sustained charge was that the company failed to take prior written permission of RBI for a change in management, which led to a change of more than 30% of its directors, excluding independent directors.
Operating Impact
Aptus Finance India Private Limited must bear the monetary penalty, but the release does not impose any operational restriction or cancellation. The action signals a governance compliance lapse and may be followed by any further RBI action, but no immediate business curtailment is stated in this release.
Regulatory Basis
- clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 3.10 L
- Order Date
- 20 Jan 2025
- Effective From
- 20 Jan 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC