Recorded RBI impact
Fine: Rs 10.0 L
Monetary penalty · Fresh imposition
Published by RBI
8 Feb 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty on M/s Pooram Finserv Pvt Limited, Thrissur, Kerala, after scrutiny of the company’s operations revealed non-compliance with RBI directions. The violations related to the Master Direction on Know Your Customer (KYC), 2016 and the RBI direction on raising money through private placement of non-convertible debentures (NCDs) by NBFCs. RBI concluded that the charge of non-compliance was substantiated and imposed the penalty under the RBI Act, 1934.
Why RBI Acted
RBI imposed a monetary penalty after scrutiny found that M/s Pooram Finserv Pvt Limited had not complied with certain provisions of the RBI Master Direction on Know Your Customer (KYC), 2016 and the RBI Direction on Raising Money Through Private Placement of Non-Convertible Debentures (NCDs) by NBFCs dated February 20, 2015. The penalty was imposed under section 45JA and section 58B(5)(aa) read with section 58G(1)(b) of the RBI Act, 1934, after considering the company’s reply to the show-cause notice.
Operating Impact
The company must absorb the ₹10 lakh penalty; the release does not describe any operational restriction, suspension, or cancellation. The action serves as a compliance warning for the NBFC and underscores RBI expectations on KYC and NCD-related regulatory adherence.
Regulatory Basis
- section 45JA
- clause (b) of sub-section (1) of section 58 G
- clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934
- RBI Master Direction - Know Your Customer (KYC) Direction, 2016
- RBI Direction on Raising Money Through Private Placement of Non-Convertible Debentures (NCDs) by NBFCs dated February 20, 2015
Action Facts
- Primary Impact
- Fine: Rs 10.0 L
- Order Date
- 4 Feb 2022
- Effective From
- 4 Feb 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC