RBI imposes monetary penalty on RAR Fincare Limited, Chennai, Tamil Nadu

Case Brief

RBI imposed a monetary penalty on RAR Fincare Limited, Chennai, Tamil Nadu, for non-compliance with certain provisions of its NBFC directions, including the Master Direction for non-systemically important non-deposit taking companies and the Master Direction on Scale Based Regulation. RBI found that the company did not obtain prior written permission before a change in management that led to more than 30% of its directors, excluding independent directors, being changed. The penalty was levied under the RBI Act, 1934, following a show-cause process and personal hearing. RBI also clarified that the penalty does not pronounce on the validity of any customer transaction or agreement and is without prejudice to any other action that may be initiated.