Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
21 Aug 2025
Case Brief
RBI, by order dated August 14, 2025, imposed a monetary penalty of Rs 1 lakh on Ayodhya Finlease Limited. The penalty was levied for non-compliance with RBI directions applicable to non-systemically important, non-deposit taking NBFCs and the Scale Based Regulation Directions, 2023. RBI found that the company failed to obtain prior written permission for a shareholding change exceeding 26% of its paid-up equity capital. RBI noted that the action is based on regulatory deficiencies and does not pronounce on the validity of any transaction with customers.
Why RBI Acted
RBI imposed a monetary penalty under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934 after finding that the company had not complied with applicable NBFC directions. The sustained charge was that it failed to obtain prior written permission from RBI for a change in shareholding in excess of 26 percent of its paid-up equity capital, contrary to the Master Direction for non-systemically important non-deposit taking NBFCs and the Scale Based Regulation Directions, 2023.
Operating Impact
Ayodhya Finlease Limited must bear the monetary penalty and remain subject to RBI oversight. The release does not impose an operating restriction, but it signals that RBI may initiate further action if warranted; the company’s compliance around shareholding changes remains under scrutiny.
Regulatory Basis
- Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 14 Aug 2025
- Effective From
- 14 Aug 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC