Recorded RBI impact
Fine: Rs 27.3 L
Monetary penalty · Fresh imposition
Published by RBI
11 Sept 2026
Case Brief
By an order dated September 08, 2026, RBI imposed a monetary penalty of Rs 27.30 lakh on Asset Care & Reconstruction Enterprise Limited. The action followed a statutory inspection with reference to the company’s financial position as of March 31, 2025, and subsequent show-cause proceedings. RBI concluded that the company had not complied with certain directions issued on ‘Income Recognition’ and sustained the specific charge that it violated regulatory requirements with respect to charging of management fees. The penalty was imposed under section 12 read with section 30A(1) of the SARFAESI Act, 2002.
Why RBI Acted
RBI imposed a monetary penalty on Asset Care & Reconstruction Enterprise Limited after a statutory inspection and follow-up proceedings found non-compliance with certain RBI directions on ‘Income Recognition’. The sustained charge was that the company violated regulatory requirements with respect to charging of management fees. The penalty was imposed under section 12 read with section 30A(1) of the SARFAESI Act, 2002, after considering the company’s reply, additional submissions, and oral submissions at the personal hearing.
Operating Impact
The company must absorb the monetary penalty and may also face any additional action RBI chooses to initiate. The release does not describe an operational ban or licensing action, so the forward impact is limited to the financial penalty and possible further supervisory proceedings.
Regulatory Basis
- section 12 read with section 30A(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Action Facts
- Primary Impact
- Fine: Rs 27.3 L
- Order Date
- 8 Sept 2026
- Effective From
- 8 Sept 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC