Recorded RBI impact
Fine: Rs 3.90 L
Monetary penalty · Fresh imposition
Published by RBI
7 Aug 2026
Case Brief
RBI, by order dated August 03, 2026, imposed a monetary penalty of ₹3.90 lakh on Utsav Securities Limited. The action followed a statutory inspection and a show-cause process, after which RBI sustained charges that the company’s KMP held office in other NBFCs-Middle Layer and that the company failed to submit credit information for certain loan accounts to CICs. The penalty was imposed under the RBI Act, 1934 and the Credit Information Companies (Regulation) Act, 2005.
Why RBI Acted
Following a statutory inspection with reference to the company’s financial position as on March 31, 2025, RBI found sustained charges of non-compliance with its directions on ‘Governance’ and ‘Submission of data to Credit Information Companies (CICs)’. Specifically, the Key Management Personnel of the company held office, including directorship, in other NBFCs-Middle Layer, and the company failed to submit credit information of certain loan accounts to CICs. RBI imposed a penalty under section 58(G)(1)(b) read with section 58(B)(5)(aa) of the RBI Act, 1934 and section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005.
Operating Impact
Utsav Securities Limited must absorb the monetary penalty, and the case underscores ongoing compliance expectations around governance norms and timely CIC reporting. The order does not invalidate customer transactions, but RBI may initiate other action separately if warranted.
Regulatory Basis
- section 58(G)(1)(b) read with section 58(B)(5)(aa) of the Reserve Bank of India Act, 1934
- section 25(1)(iii) read with section 23(4) of Credit Information Companies (Regulation) Act, 2005
Action Facts
- Primary Impact
- Fine: Rs 3.90 L
- Order Date
- 3 Aug 2026
- Effective From
- 3 Aug 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC