Northern Arc Capital Limited

RBI imposed a Rs 6.20 lakh penalty on Northern Arc Capital Limited for lapses in regulatory disclosures and internal grievance escalation. The company was found non-compliant with RBI directions on financial statement disclosures and the Internal Ombudsman framework.

Northern Arc Capital Limited must treat the penalty as a regulatory enforcement action and address the disclosure and complaint-handling gaps identified by RBI. The order does not by itself invalidate customer transactions, but RBI has stated that the penalty is without prejudice to any other action it may initiate, so further supervisory or enforcement steps remain possible.

• section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934

RBI imposed a ₹2.70 lakh penalty on Northern Arc Capital Limited for KYC-related non-compliance. The company allegedly lacked an IT system/software for effective identification and reporting of suspicious transactions.

Northern Arc Capital Limited must absorb the monetary penalty and address the KYC compliance gap identified by RBI, especially the lack of an IT system/software for suspicious transaction identification and reporting. The order is stated to be without prejudice to any other action RBI may initiate, so further supervisory or enforcement action remains possible.

• Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934