RBI imposes monetary penalty on Maxvalue Credits and Investments Limited, Thrissur, Kerala

Case Brief

RBI, by order dated November 25, 2024, imposed a monetary penalty of ₹4.50 lakh on Maxvalue Credits and Investments Limited, Thrissur, Kerala. The penalty was imposed after a statutory inspection and subsequent show-cause proceedings, which found non-compliance with RBI directions applicable to NBFCs, including directions on systemically important non-deposit taking and deposit taking companies and directions on acceptance of public deposits. RBI sustained charges that the company changed shareholding beyond 26% without prior written permission, redeemed subordinated debts without RBI consent, accessed public deposits through subordinated debts / non-convertible debentures despite being a non-deposit taking NBFC, and failed to make certain disclosures in its annual financial statements. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.