RBI imposes monetary penalty on Shri Ram Finance Corporation Private Limited
Distilled Policy Brief
- The penalty was levied under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934, following a statutory inspection of the company’s financial position as on 31 March 2025.
🎯 Prelims High-Yield Examination Points
RBI’s power to levy penalties under the RBI Act for governance and KYC non‑compliance of NBFCs.
⚖️ Mains Analytical & Syllabus Linkages
Analyse the role of RBI in enforcing governance standards and KYC compliance in non‑banking financial companies and the impact of monetary penalties on regulatory discipline.
🎯 UPSC Prelims Practice Drill
The monetary penalty of ₹8.10 lakh imposed by the Reserve Bank of India on Shri Ram Finance Corporation Private Limited was exercised under which provision(s) of the RBI Act, 1934?
- [A] Section 58G(1)(b) read with section 58B(5)(aa)
- [B] Section 45A(2)(c) read with section 22(1)
- [C] Section 35(3) read with section 12(4)
- [D] Section 21(1) read with section 30(2)
▶ Reveal Official Answer & Analytical Explanation
The order states that the penalty was imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934. The other sections mentioned are not cited in the provided text.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.