RBI imposed monetary penalty of Rs.81.92 lakh on Jupiter Capital Private Limited

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹81.92 lakh (Rupees Eighty one lakh and ninety two thousand only) on Jupiter Capital Private Limited, Bengaluru (the company), for non-compliance with certain provisions of the directions issued by RBI contained in the ‘Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016’ and RBI directions on “Membership of Credit Information Companies (CICs)” by an order dated August 03, 2022.

The Reserve Bank of India Act, 1934’s clause (b) of sub-section (1), read with clause (aa) of sub-section (5), and the Credit Information Companies (Regulation) Act, 2005’s clause (iii) of sub-section (1), read with subsection (4), both provide the basis for the imposition of this fine, which takes into account the company’s failure to follow the aforementioned directions issued.

This action is based on the regulatory compliance shortcomings and is not meant to judge the legality of any deal or agreement the company has with its clients.

Background

Examining the supervisory letters and all related correspondence regarding the company’s financial position as of March 31, 2020 and March 31, 2021 revealed, among other things, non-compliance with the RBI guidelines on I submitting credit information to the Central Repository of Information on Large Credits and (ii) submitting credit information data to Credit Information Companies. A notification was sent to the company in response to this, instructing it to provide justification as to why a fine should not be imposed for failing to follow the RBI’s stated instructions.

After considering the company’s reply to the notice, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.