Recorded RBI impact
Fine: Rs 50,000
Monetary penalty · Fresh imposition
Published by RBI
28 Mar 2025
Case Brief
By an order dated March 27, 2025, RBI imposed a monetary penalty of ₹50,000 on Purvaja Fincap Pvt. Ltd. for non-compliance with the Master Direction - Reserve Bank of India (Non-Banking Financial Company-Scale Based Regulation) Directions, 2023. RBI found that the company had prematurely redeemed subordinated debts without RBI's consent. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, after considering the company's reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934 after finding that Purvaja Fincap Pvt. Ltd. had pre-maturely redeemed subordinated debts without obtaining RBI's consent. The release states this amounted to non-compliance with the Master Direction - Reserve Bank of India (Non-Banking Financial Company-Scale Based Regulation) Directions, 2023.
Operating Impact
Purvaja Fincap Pvt. Ltd. must bear the penalty and remain subject to RBI's ongoing supervisory powers. The release also makes clear that RBI may initiate any other action separately if warranted, but no additional operational restriction is imposed by this notice.
Regulatory Basis
- Section 58 G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 50,000
- Order Date
- 27 Mar 2025
- Effective From
- 27 Mar 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC