Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹5.00 lakh on Savery Transport Finance Ltd., Chennai, Tamil Nadu, for non-compliance with certain provisions of the Master Direction on RBI (NBFC - Scale Based Regulation) Directions, 2023. RBI said the company had not defined how the interest rate was to be applied in the loan agreement, charged interest above the rate communicated in the agreement, and failed to update interest rates and the approach for risk gradation on its website. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, after considering the company’s reply and oral submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- NBFC
- Location
- Chennai, Tamil Nadu