Recorded RBI impact
Fine: Rs 9.50 L
Monetary penalty · Fresh imposition
Published by RBI
4 May 2021
Case Brief
By an order dated May 03, 2021, RBI imposed a monetary penalty of ₹9.50 lakh on Balaji Instalments Limited, Pilibhit. The penalty was imposed because the company failed to comply with certain provisions of the RBI's NBFC Returns Directions, 2016 and NBFC Acceptance of Public Deposits Directions, 1998 (as amended). RBI noted that the non-compliance was found in scrutiny, a show-cause notice was issued, and after considering the company's reply and oral submissions, the charge was held substantiated under section 58G read with section 58B(5)(aa) of the RBI Act, 1934.
Why RBI Acted
A scrutiny of Balaji Instalments Limited revealed non-compliance with certain provisions of the RBI's 'Non-Banking Financial Company - Returns (Reserve Bank) Directions, 2016' and 'Non-Banking Financial Companies – Acceptance of Public Deposits (Reserve Bank) Directions, 1998' (as amended). RBI issued a show-cause notice, considered the company's reply and oral submissions, and concluded that the non-compliance was substantiated, warranting a monetary penalty under section 58G read with section 58B(5)(aa) of the RBI Act, 1934.
Operating Impact
Balaji Instalments Limited must bear the financial penalty; the release does not mention any new business restriction, suspension, or cancellation. The action serves as an enforcement consequence for past compliance failures and does not itself state any direct customer-facing operational change or deadline beyond the order date.
Regulatory Basis
- clause (b) of sub-section (1) of section 58 G 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 9.50 L
- Order Date
- 3 May 2021
- Effective From
- 3 May 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC