Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
27 Mar 2025
Case Brief
By an order dated March 25, 2025, RBI imposed a monetary penalty of ₹1.00 lakh on Mikhael Capitalize Pvt. Ltd., Kerala. The penalty was for non-compliance with RBI’s NBFC directions: the company failed to take prior written permission for a shareholding change exceeding 26% of paid-up equity capital, and it failed to intimate RBI within the prescribed timeline regarding the appointment of an independent director. RBI issued a show-cause notice, considered the company’s reply and oral submissions, and then sustained the charges under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.
Why RBI Acted
RBI imposed a monetary penalty on Mikhael Capitalize Pvt. Ltd. for non-compliance with provisions of the Master Direction on NBFCs read with the Scale Based Regulation directions. The company allegedly failed to obtain prior written RBI permission for a change in shareholding exceeding 26% of paid-up equity capital and failed to intimate RBI about the appointment of an independent director within the prescribed timeline. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.
Operating Impact
The company must absorb the penalty and remain compliant with RBI’s NBFC ownership and governance reporting requirements. The order does not, by itself, alter the validity of the underlying transactions, but RBI has reserved the right to initiate further action if warranted.
Regulatory Basis
- Section 58G(1)(b)
- Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 25 Mar 2025
- Effective From
- 25 Mar 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC