Recorded RBI impact
Fine: Rs 4.10 L
Monetary penalty · Fresh imposition
Published by RBI
28 Mar 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty on UCA Finvest Private Limited by order dated March 27, 2025. RBI said the company had failed to comply with specific conditions attached to its Certificate of Registration issued under Section 45IA(5) of the RBI Act. After reviewing the company's reply and oral submissions, RBI sustained the charge that the company had accepted public funds and had customer interface while sanctioning loans and advances, contrary to the CoR conditions. The penalty was imposed under Section 58G(1)(a) read with Section 58B(6) of the RBI Act and is without prejudice to any other action RBI may initiate.
Why RBI Acted
RBI imposed a monetary penalty under Section 58G(1)(a) read with Section 58B(6) of the RBI Act after concluding that UCA Finvest Private Limited did not comply with specific conditions attached to its CoR issued under Section 45IA(5). The non-compliance, reflected in the company's FY 2021-22 financial statements and related correspondence, concerned the company accepting public funds and maintaining customer interface while sanctioning loans and advances.
Operating Impact
UCA Finvest must absorb the monetary penalty and remain exposed to any further regulatory action RBI may choose to take. The release does not describe an operational ban or licence action, but it underscores continuing compliance obligations around the conditions of the company's registration and its lending activity.
Regulatory Basis
- section 45IA(5) of Reserve Bank of India Act, 1934
- clause (a) of sub-section (1) of Section 58G read with sub-section (6) of Section 58 B of the RBI Act
Action Facts
- Primary Impact
- Fine: Rs 4.10 L
- Order Date
- 27 Mar 2025
- Effective From
- 27 Mar 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC