Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 lakh on M/s Radhakrishna Finance Pvt. Ltd. under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934. RBI’s scrutiny of the company found that it had violated directions relating to subordinated debt by redeeming subordinated debt without obtaining the Bank’s consent. The release cites para 2(1)(xxvi) of circular DNBR.(PD).CC.No.044/03.10.119/2015-16 dated July 1, 2015 and item (xvii) of para 3 in Chapter II of the Master Directions on Acceptance of PD Directions 2016 dated August 25, 2016. After a show-cause notice and personal hearing, RBI concluded that the violations were substantiated and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- NBFC
- Action Type