Recorded RBI impact
Fine: Rs 30,000
Monetary penalty · Fresh imposition
Published by RBI
23 Mar 2026
Case Brief
RBI imposed a monetary penalty on Vedvyas Finance Private Limited, Odisha by order dated March 16, 2026. The penalty was for non-compliance with RBI directions on governance: the company appointed a director without obtaining prior written permission from RBI, which resulted in a change in management due to change in more than 30% of its directors (excluding independent directors). RBI issued a show-cause notice, considered the company’s reply and oral submissions, and then imposed the penalty under the RBI Act, 1934.
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 Vedvyas Finance Private Limited did not take prior written permission of RBI before appointing a director. This led to a change in management because more than 30% of its directors, excluding independent directors, changed. The action was taken for non-compliance with RBI directions on governance, following a show-cause notice and consideration of the company’s reply and oral submissions.
Operating Impact
Vedvyas Finance Private Limited must absorb the monetary penalty; the order does not impose an operating restriction or license action. The release notes the penalty is without prejudice to any other action RBI may initiate in future.
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 30,000
- Order Date
- 16 Mar 2026
- Effective From
- 16 Mar 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC