Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
21 Mar 2017
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5,00,000 on Eko India Financial Services Private Limited under section 30 of the PSS Act, 2007. The penalty was based on findings that the entity had not adhered to RBI instructions and had submitted wrongful reporting. RBI had earlier issued a show-cause notice after scrutinizing returns, and it concluded the charges were substantiated after reviewing the entity’s written submission.
Why RBI Acted
RBI imposed a monetary penalty under section 30 of the PSS Act, 2007 on Eko India Financial Services Private Limited for not adhering to RBI instructions and for wrongful reporting. A show-cause notice had been issued earlier based on scrutiny of returns, and after considering the facts and the entity’s written submission, RBI concluded that the charges were substantiated.
Operating Impact
Eko India Financial Services Private Limited must absorb the financial penalty and address the compliance issues identified by RBI, particularly around adherence to regulatory instructions and accuracy of reporting. The action does not indicate an operational restriction, but it signals heightened regulatory scrutiny of the entity’s compliance controls and reporting practices.
Regulatory Basis
- section 30 of the PSS Act, 2007
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity