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IGH Holdings Private Limited, Mumbai

NBFCMumbai

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 11.3 L

Monetary penalty · Fresh imposition

S3

Published by RBI

17 Mar 2023

Case Brief

RBI imposed a monetary penalty on IGH Holdings Private Limited, Mumbai by order dated March 15, 2023. The penalty was for non-compliance with section 45-IC of the RBI Act, 1934 and RBI directions under the CIC (Regulation) Act, 2005 relating to membership of Credit Information Companies and submission of credit information. RBI’s inspection found that the company did not transfer 20% of its FY2020-21 net profit to the Reserve Fund, failed to become a member of three out of four CICs, and did not furnish credit information even to the CIC of which it was a member. RBI said the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of the company’s transactions or agreements with customers.

Why RBI Acted

Reporting & disclosureLicensing breach

RBI imposed a monetary penalty on IGH Holdings Private Limited, Mumbai after its statutory inspection found multiple compliance failures. The company failed to transfer 20% of its FY2020-21 net profit to the Reserve Fund, did not become a member of three out of four Credit Information Companies, and did not furnish credit information even to the CIC of which it was a member. RBI concluded that these contraventions of section 45-IC of the RBI Act, 1934 and directions issued under section 11(1) of the CIC (Regulation) Act, 2005, as contained in the 2016 NBFC directions, were substantiated and warranted penalty.

Operating Impact

IGH Holdings Private Limited must absorb the monetary penalty and address the compliance gaps identified by RBI. The ruling underscores continuing obligations around reserve-fund transfers, CIC membership, and submission of credit information, with potential supervisory consequences if non-compliance persists.

Regulatory Basis

  • section 45-IC of the Reserve Bank of India Act, 1934
  • sub-section (1) of section 11 of Credit Information Companies (Regulation) Act, 2005
  • clause (a) of sub-section (1) of section 58-G read with sub-section (6) of section 58-B of the RBI Act
  • clause (iii) of sub-section (1) of section 25 read with sub-section (4) of section 23 of CIC (R) Act

Action Facts

Primary Impact
Fine: Rs 11.3 L
Order Date
15 Mar 2023
Effective From
15 Mar 2023
Entities Affected
1
Entity Role
Primary
Entity Type
NBFC