RBI imposes monetary penalty on Ayodhya Finlease Limited

The Reserve Bank of India (RBI) has, imposed a monetary penalty of ₹1 lakh (Rupees One Lakh only) on Ayodhya Finlease Limited (the company) for non-compliance with certain provisions of ‘Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016’ read with ‘Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023’ issued by RBI.

This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.

The penalty has been imposed as the company had failed to obtain prior written permission of RBI for change in shareholding in excess of 26 percent of its paid-up equity capital.

This action is based on 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.