RBI Imposes Monetary Penalty on NABFINS Limited for Non-Compliance
The Reserve Bank of India (RBI) has taken strict action against NABFINS Limited, a subsidiary of NABARD, by imposing a monetary penalty of ₹10 lakh (Rupees Ten lakh only) for non-compliance with certain provisions of the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
Monetary Penalty
In an order dated April 15, 2024, the RBI announced the penalty after conducting a statutory inspection of NABFINS Limited. The inspection focused on the company's financial position as of March 31, 2022. Based on supervisory findings of non-compliance with RBI directions and related correspondence, the RBI issued a notice to the company, giving it an opportunity to explain why a penalty should not be imposed for i...