SC: UGC Regulations Override State Law on Forming Search Committees For University VC Appointments  ||  SC: State Cannot Deny Regularisation to Long-Serving Contract Staff Appointed Through Due Process  ||  Supreme Court: Patients Cannot Claim Unproven Medical Treatments as a Matter of Right  ||  SC: Polluting Company’s Turnover May Be Considered While Fixing Environmental Damage Compensation  ||  Delhi HC: Dacoity Convicts U/S 395 IPC Cannot Claim Benefit under the Probation of Offenders Act  ||  Bombay HC: An Adopted Child’s Caste is Considered the Same as That of the Adoptive Parents  ||  Calcutta High Court: 18-Month Delay in Delivering a Judgment Alone is Not Sufficient to Set it Aside  ||  Punjab & Haryana High Court: ED Can Arrest Individuals Even if FIRs are Added to the ECIR Later  ||  SC: Menstrual Health is a Fundamental Right under Article 21; Orders Free Sanitary Pads in Schools  ||  Supreme Court: Industrial Court is the Proper Forum to Decide Issues Relating to Contract Labour    

RBI imposes monetary penalty on IGH Holdings Private Limited, Mumbai- (Reserve Bank of India) (17 Mar 2023)

MANU/RPRL/0164/2023

Banking

The Reserve Bank of India (RBI) has, by an order dated March 15, 2023, 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 (ClCs) 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'. This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (a) of sub-section (1) of section 58-G read with sub-section (6) of section 58-B of the RBI Act and clause (iii) of sub-section (1) of section 25 read with sub-section (4) of section 23 of 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.

Background

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2021 and examination of the Risk Assessment Report, Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed, inter alia, that the company failed to (i) comply with the statutory requirement of transferring 20% of the net profit as disclosed in its profit and loss account for the financial year 2020-21 to the Reserve Fund, (ii) become member of three out of four CICs and (iii) furnish any credit information to even the CIC, of which it was a member. In furtherance to the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the provisions of the RBI Act and the directions issued by the RBI under CIC (R) Act, as stated therein.

After considering the company's reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid provisions of the RBI Act and directions was substantiated and warranted imposition of monetary penalty on the company, to the extent of non-compliance with the provisions of the RBI Act and the directions.

Tags : NON-COMPLIANCE   MONETARY PENALTY   IMPOSITION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved