Recorded RBI impact
Fine: Rs 25,000
Monetary penalty · Fresh imposition
Published by RBI
25 Nov 2024
Case Brief
By an order dated November 14, 2024, the RBI imposed a monetary penalty of ₹25,000 on GPT Sons Pvt Ltd. The penalty was levied after a select scope inspection and subsequent show-cause proceedings found that the company had not complied with Section 45IC of the RBI Act, 1934. Specifically, the company failed to transfer 20% of its net profits for FY 2011-12, 2012-13, 2017-18 and 2020-2021 to the Statutory Reserve, even as on March 31, 2023. RBI stated that the action was taken under Section 58G(1) read with Section 58B(6) of the RBI Act and was without prejudice to any other action that may be initiated.
Why RBI Acted
RBI imposed a monetary penalty on GPT Sons Pvt Ltd. after a select scope inspection and show-cause process found non-compliance with Section 45IC of the Reserve Bank of India Act, 1934. The sustained charge was that the company had failed to transfer 20% of its net profit for financial years 2011-12, 2012-13, 2017-18 and 2020-2021 to the Statutory Reserve, even as on March 31, 2023. The penalty was imposed under Section 58G(1) read with Section 58B(6) of the RBI Act.
Operating Impact
GPT Sons Pvt Ltd. must absorb the penalty and remain exposed to any further action RBI may choose to initiate. The order does not impose a business restriction or operational ban, but it signals a compliance lapse in reserve-transfer requirements under the RBI Act.
Regulatory Basis
- Section 45IC of the Reserve Bank of India Act, 1934
- Section 58G(1) read with Section 58B(6) of RBI Act
Action Facts
- Primary Impact
- Fine: Rs 25,000
- Order Date
- 14 Nov 2024
- Effective From
- 14 Nov 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC