Reserve Bank of India imposes monetary penalty on Sonata Finance Private Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹15 lakh on Sonata Finance Private Limited, Lucknow, Uttar Pradesh. RBI said statutory inspections for the company's financial positions as on March 31, 2018 and March 31, 2019 revealed non-compliance with RBI directions on 'Pricing of Credit' under the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. After a show-cause notice, reply, oral submissions, and additional submissions, RBI held the contravention substantiated and imposed the penalty under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.