Case Brief
RBI, by order dated May 19, 2023, imposed a monetary penalty of ₹4.00 lakh on Rain Bow Finance India Ltd., Chennai, Tamil Nadu. The penalty was for non-compliance with RBI’s Master Direction for NBFC–Non-Systemically Important Non-Deposit Taking Companies, specifically directions related to standard asset provisioning and leverage ratio. RBI said its examination of MCA records, NBS returns, and the statutory auditor’s certificate showed that the company had not created contingent provision against standard assets and had a high leverage ratio. After notice, reply, and personal hearing, RBI concluded that the contraventions were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 4.00 L
- Entity Type
- NBFC
- Location
- Chennai, Tamil Nadu