Mumbai (Maharashtra) [India], January 14 (ANI): The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 30 lakh on Bahadur Chand Investments, New Delhi, 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.
This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers, RBI said.
After conducting statutory inspection of the company, RBI revealed the company’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 RBI’s statutory inspection of the company 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.
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.
After considering the company’s reply to the notice, examination of additional submissions made by it and oral submissions made during the personal hearing, the central bank came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Subscribe to our channels on YouTube & Telegram
Support Our Journalism
India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.
Sustaining this needs support from wonderful readers like you.
Whether you live in India or overseas, you can take a paid subscription by clicking here.
Support Our Journalism
Copyright © 2022 Printline Media Pvt. Ltd. All rights reserved.
