Recorded RBI impact
Fine: Rs 1.50 L
Monetary penalty · Fresh imposition
Published by RBI
20 Nov 2023
Case Brief
By an order dated November 02, 2023, RBI imposed a monetary penalty of ₹1.50 lakh on Sappers Finance and Consultancy Pvt Ltd., Kolkata. The penalty was imposed for non-compliance with RBI directions on prior approval in cases of acquisition/transfer of control of NBFCs and on NBFC returns, read with the directions on the format of the statutory auditors’ certificate. RBI found that the company failed to obtain prior approval for change of management and failed to submit applicable returns and the statutory auditor’s certificate. The action was taken under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, and RBI clarified that the penalty was based on regulatory-compliance deficiencies and not intended to pronounce on the validity of any transaction or agreement with customers.
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 the company had not taken prior approval for change of management/control and had not submitted the applicable NBFC returns and statutory auditor’s certificate as required under RBI directions.
Operating Impact
The company must absorb the penalty; the release does not mention any operational restriction or licence consequence. The forward-looking obligation is compliance with RBI approval, returns, and statutory certificate requirements for NBFCs.
Regulatory Basis
- Section 58G (1) (b) read with Section 58B (5)(aa) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 1.50 L
- Order Date
- 2 Nov 2023
- Effective From
- 2 Nov 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC