Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
28 Mar 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹50,000 on Habitat Micro Build India Housing Finance Company Private Ltd., Karnataka, by an order dated March 26, 2025. RBI said the company breached provisions of the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 by failing to obtain prior written permission before effecting a change in management that resulted in a change of more than 30% of its directors, excluding independent directors. The penalty was imposed after a statutory inspection by the National Housing Bank, issuance of a show-cause notice, and consideration of the company’s reply and oral submissions. RBI noted that the action is based on regulatory compliance deficiencies and is without prejudice to any other action that may be initiated.
Why RBI Acted
RBI imposed a monetary penalty under Section 52A of the National Housing Bank Act, 1987 after supervisory findings and a show-cause process. The company was found to have contravened provisions of the RBI’s Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 by not obtaining prior written permission for effecting a change in management, which led to a change of more than 30% of its directors (excluding independent directors).
Operating Impact
The company must absorb the monetary penalty and remain alert to possible further regulatory action. The order does not state any operational restriction on the company’s business, but it highlights RBI’s expectation of prior approval for significant changes in management.
Regulatory Basis
- Section 52A of the National Housing Bank Act, 1987
- Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 26 Mar 2025
- Effective From
- 26 Mar 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC