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The Reserve Bank of India has imposed a monetary penalty of ₹30 lakh on Bahadur Chand Investments Private Limited, New Delhi, for violations of key regulatory requirements under the Core Investment Companies Directions, 2016, and the IT Framework for the NBFC sector. The order, issued on January 6, 2023, invokes the powers granted to the RBI under the Reserve Bank of India Act, 1934. The central bank clarified that the penalty is strictly a regulatory action and does not question the validity of any transactions or agreements entered into by the company with its customers.
The action follows a statutory inspection conducted by the RBI based on the company’s financials as of March 31, 2021. The inspection and subsequent supervisory review revealed multiple lapses. These included non-compliance with RBI’s outsourcing guidelines, failure to appoint an Independent Director or key IT leadership such as a Chief Information Officer or Chief Technology Officer on the IT Strategy Committee, and omission of required disclosures on Adjusted Net Worth and related details in the annual financial statements.
A show-cause notice was issued to the company to explain the reasons for these lapses. After reviewing the company’s written and oral submissions, the RBI concluded that the violations were substantiated and warranted monetary penalty.
[RBI]