Recorded RBI impact
Fine: Rs 3.10 L
Monetary penalty · Fresh imposition
Published by RBI
12 Aug 2024
Case Brief
The Reserve Bank of India imposed a monetary penalty on Ashoka Viniyoga Limited by order dated August 08, 2024. RBI found that the company 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 relating to governance issues, specifically failing to obtain prior written permission for a change in management that resulted in more than 30% of its directors being changed, excluding independent directors. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.
Why RBI Acted
RBI imposed a monetary penalty on Ashoka Viniyoga Limited for non-compliance with certain provisions of the RBI’s Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, relating to governance issues. The company’s correspondence on appointment of directors showed non-compliance, and RBI found that it failed to take prior written permission for a change in management that led to a change of more than 30% of its directors, excluding independent directors. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.
Operating Impact
Ashoka Viniyoga Limited must bear the monetary penalty of Rs 3.10 lakh. The action is a compliance enforcement measure and does not by itself impose an operating restriction, but it signals RBI scrutiny of governance and director-change approval requirements for the company.
Regulatory Basis
- clause (b) of sub-section (1) of section 58G
- 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
- 8 Aug 2024
- Effective From
- 8 Aug 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC