The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1 lakh (Rupees One Lakh only) on Ayodhya Finlease Limited for non-compliance with certain provisions of Master Direction - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 read with Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 issued by RBI.
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| RBI Imposes Rs 1 lakh Penalty on Ayodhya Finlease |
RBI Imposes ₹1 lakh Penalty on Ayodhya Finlease
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on Ayodhya Finlease Limited for non-compliance with certain provisions of Master Direction - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 read with Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 issued by RBI.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
RBI Imposes Penalty on Ayodhya Finlease: Background
The correspondence between RBI and the company revealed inter alia non-compliance with RBI directions.
Based on 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 its failure to comply with the said directions. After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:
- The Ayodhya Finlease company had failed to obtain prior written permission of RBI for change in shareholding in excess of 26 percent of its paid-up equity capital.
This action is based on 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
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About Ayodhya Finlease
Ayodhya Finlease Limited is a Public company incorporated on 06 Dec 1995. It is classified as a Non-government company and is registered at the Registrar of Companies, Delhi.
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About Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Ayodhya Finlease for upcoming exams
- Incorporated on: 06 December 1995
- Headquarters: New Delhi
- Directors: Sushil Kumar Goyal, Ashish Singh Chauhan, and Sameer Sibal
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