Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
24 Jan 2025
Case Brief
By an order dated January 15, 2025, RBI imposed a monetary penalty of ₹1.00 lakh on Datson Exports Ltd., West Bengal. The action followed a statutory inspection and show-cause process, which found that the company had not complied with RBI directions on managing risks and code of conduct in outsourcing of financial services by NBFCs. RBI specifically sustained the charge that the company outsourced a decision-making function, namely sanction of loans, to its Digital Lending Application (DLA) partner. 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 after supervisory inspection and show-cause proceedings found non-compliance with directions on 'Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs'. The sustained charge was that Datson Exports Ltd. outsourced one of its decision-making functions, viz., sanction of loans, to its Digital Lending Application (DLA) partner. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.
Operating Impact
Datson Exports Ltd. must bear the monetary penalty; the release does not impose any new operational restriction or deadline. The order also notes that RBI may initiate any other action separately, if warranted.
Regulatory Basis
- Section 58 G(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
- 15 Jan 2025
- Effective From
- 15 Jan 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC