Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
18 Nov 2020
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Nissan Renault Financial Services India Private Limited, Chennai, by order dated November 17, 2020. The penalty was levied for non-compliance with RBI directions applicable to NBFCs under the 2016 Directions, specifically the Fair Practices Code. RBI said its statutory inspection found the non-compliance, issued a show-cause notice, and after considering the company's reply and supporting documents, held the charge substantiated under the RBI Act, 1934.
Why RBI Acted
RBI imposed a monetary penalty after its statutory inspection found non-compliance with the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, specifically the Fair Practices Code requirements. RBI stated the company failed to adhere to the applicable directions, and after considering the company's reply and additional documents, concluded the charge was substantiated under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.
Operating Impact
The company must bear the ₹5 lakh penalty, but the release does not impose any new operational restriction or licence action. The finding is limited to regulatory non-compliance and does not pronounce on the validity of customer transactions or agreements.
Regulatory Basis
- clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58 B of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 17 Nov 2020
- Effective From
- 17 Nov 2020
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC