RBI imposes ₹30 lakh fine on Delhi-based Bahadur Chand Investments for non-compliance | Mint – Mint

  • The RBI added that the action is based on the deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.

The Reserve Bank of India (RBI) imposed a monetary penalty of 30 lakh on Delhi-based Bahadur Chand Investments for non-compliance with certain provisions of the ‘Core Investment Companies (Reserve Bank) Directions, 2016’ and directions on ‘Information Technology Framework for the NBFC (non-banking financial company) Sector’.
“This penalty has been imposed in exercise of powers vested in RBI under the provisions of the Reserve Bank of India Act, 1934,” the central bank said in a statement on Friday.
The RBI added that the action is based on the deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.
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The central bank revealed that the firm’s failure to comply with the RBI directions on outsourcing, appointing an independent director/chief information officer (CIO)/chief technology officer (CTO) on IT strategy committee and disclosing components of adjusted net worth (ANW) and other related information in its annual financial statements for the position as on March 31, 2021.
The statutory inspection was conducted with reference to Bahadur Chand’s financial position as on March 31, 2021, and examination of the risk assessment report, inspection report, supervisory letter and all related correspondence pertaining to the same, according to the statement.
As per details, the adjusted net worth is calculated by estimating the value of the business on the company’s books and adding unrealised capital gains, capital surplus, and voluntary reserves.
In furtherance to the same, RBI said a notice was issued to the company advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the RBI directions, as stated therein.
With agency inputs.
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