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Savery Transport Finance Ltd

NBFCChennai, Tamil Nadu

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

Fine: Rs 5.00 L

Monetary penalty · Fresh imposition

S2

Published by RBI

28 Mar 2025

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Savery Transport Finance Ltd., Chennai, Tamil Nadu, for non-compliance with certain provisions of the Master Direction on RBI (NBFC - Scale Based Regulation) Directions, 2023. RBI said the company had not defined how the interest rate was to be applied in the loan agreement, charged interest above the rate communicated in the agreement, and failed to update interest rates and the approach for risk gradation on its website. 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

Lending normsFair practicesReporting & disclosure

RBI imposed a monetary penalty under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934 after finding sustained charges that the company did not define the method of application of interest rate in the loan agreement, charged interest in excess of the annualised rate communicated in the loan agreement, and did not update interest rates and its risk-gradation approach on its website. The non-compliance related to the Master Direction- Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023.

Operating Impact

The company must absorb the penalty and address the compliance gaps identified by RBI, especially around loan agreement transparency, interest-rate practices, and website disclosures. There is no indication of an operational restriction, but RBI has reserved the right to take any other action it may deem fit in future.

Regulatory Basis

  • Section 58 G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
  • Master Direction- Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023

Action Facts

Primary Impact
Fine: Rs 5.00 L
Order Date
26 Mar 2025
Effective From
26 Mar 2025
Entities Affected
1
Entity Role
Primary
Entity Type
NBFC