The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.70 lakh on Shriram Finance Limited, a NBFC, for non-compliance with certain provisions of the “Reserve Bank of India (Digital Lending) Directions, 2025” issued by RBI.
The penalty has been imposed in exercise of powers conferred on RBI under clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2024.
Following charge against the company was sustained, warranting imposition of monetary penalty:
The company routed the loan repayments through the account of a third-party, instead of the borrowers directly crediting the loan repayments to the company’s account.
The 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.