RBI imposes Monetary Penalty on Private Limited Company; Check Reason Why?

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.11.25 lakh (Rupees Eleven lakh twenty five thousand only) on IGH Holdings Private Limited, Mumbai (the company) for non-compliance with the provisions of section 45-IC of the Reserve Bank of India Act, 1934 (RBI Act) and the directions issued by RBI under sub-section (1) of section 11 of Credit Information Companies (Regulation) Act, 2005 [CIC (R) Act] on membership of Credit Information Companies (CICs) and submission of credit information to CICs contained in ‘Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ by an order dated March 15, 2023.

This penalty was imposed in accordance with the provisions of clause (a) of sub-section (1) of section 58-G read in conjunction with sub-section (6) of section 58-B of the RBI Act and clause (iii) of sub-section (1) of section 25 read in conjunction with sub-section (4) of section 23 of the CIC (R) Act.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.