Case Brief
By order dated March 03, 2025, RBI imposed a monetary penalty of Rs 1.00 lakh on Vanchinad Finance Pvt. Ltd., Ernakulam, Kerala. The penalty was for non-compliance with certain provisions of the NBFC – Non-Systemically Important Non-Deposit taking Company Directions, 2016, read with the Master Direction on NBFC-Scale Based Regulation, 2023. RBI noted that correspondence relating to intimation of an interim dividend to the parent company revealed non-compliance, and after notice, reply, and oral hearing, sustained the charge that the company had declared dividend in excess of the prescribed dividend payout ratio. RBI clarified that the action is based on regulatory deficiencies and does not pronounce on the validity of any transaction or agreement with customers.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 L
- Entity Type
- NBFC
- Location