RBI imposes monetary penalty on Sappers Finance and Consultancy Private Limited, Kolkata

Case Brief

By an order dated November 02, 2023, RBI imposed a monetary penalty of ₹1.50 lakh on Sappers Finance and Consultancy Pvt Ltd., Kolkata. The penalty was imposed for non-compliance with RBI directions on prior approval in cases of acquisition/transfer of control of NBFCs and on NBFC returns, read with the directions on the format of the statutory auditors’ certificate. RBI found that the company failed to obtain prior approval for change of management and failed to submit applicable returns and the statutory auditor’s certificate. The action was taken under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, and RBI clarified that the penalty was based on regulatory-compliance deficiencies and not intended to pronounce on the validity of any transaction or agreement with customers.