Recorded RBI impact
Fine: Rs 20.0 L
Monetary penalty · Fresh imposition
Published by RBI
12 Oct 2017
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹20 lakh on M/s Religare Finvest Ltd. under section 58G read with section 58B of the RBI Act, 1934. RBI said an inspection under section 45N found the company had failed to comply with various directions/orders issued by RBI from time to time, including in relation to an assignment transaction. After a show-cause notice and personal hearing, RBI concluded the violations were substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the RBI Act, 1934. An inspection under section 45N found that the company had failed to comply with various RBI directions/orders, inter alia in respect of an assignment transaction; the company’s reply to the show-cause notice and submissions at personal hearing were not found satisfactory.
Operating Impact
The company must absorb the monetary penalty; no operational restriction is described in this release. The action is adverse to the company, but it does not impose a suspension, cancellation, or business-wide operating cap.
Regulatory Basis
- clause (b) of sub-section (1) of section 58G
- clause (aa) of sub-section (5) of section 58B
- section 45N of the Reserve Bank of India Act, 1934
- sub section (2) of section 58G of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 20.0 L
- Effective From
- 10 Jul 2017
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC