Case Brief
By an order dated November 14, 2024, the RBI imposed a monetary penalty of ₹25,000 on GPT Sons Pvt Ltd. The penalty was levied after a select scope inspection and subsequent show-cause proceedings found that the company had not complied with Section 45IC of the RBI Act, 1934. Specifically, the company failed to transfer 20% of its net profits for FY 2011-12, 2012-13, 2017-18 and 2020-2021 to the Statutory Reserve, even as on March 31, 2023. RBI stated that the action was taken under Section 58G(1) read with Section 58B(6) of the RBI Act and was without prejudice to any other action that may be initiated.
Action Snapshot
- Primary Impact
- Fine: Rs 25,000
- Entity Type
- NBFC
- Action Type
- Monetary penalty