RBI imposes monetary penalty on Shriram Finance Limited
Shriram Finance Limited 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.
RBI imposes monetary penalty on Shriram Finance Limited
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.
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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.
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