by Team Emka
This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58 B of the Reserve Bank of India Act, 1934.
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.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2020
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
aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.