Case Brief
The Reserve Bank of India imposed a monetary penalty on Indian School Finance Company Pvt. Ltd., Telangana, by order dated January 03, 2025. RBI said the company had not complied with certain directions on 'Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs', and specifically found that it outsourced its core management function of Internal Audit to an external auditor. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, following a statutory inspection and show-cause proceedings.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- NBFC
- Location
- Telangana
- Order Date