“An inspection of the company was conducted under section 45N of the RBI Act, 1934 during September-October 2015. During the inspection, it was observed that the company has failed to comply with various directions/orders issued by RBI inter alia in respect of an assignment transaction,” India’s central bank said.
Religare Finvest is part of the Religare Group, and was founded in 2001 as a private non-banking financial institution. It focuses lending to small businesses and SMEs.
The company was issued a Show Cause Notice (SCN) on November 7, 2016 for the purpose of imposing penalty. The company’s response to the SCN was not found to be satisfactory. The company was also accorded a personal hearing by RBI.
“After considering the entire facts of the case and the company’s reply, as also the submissions made during the personal hearing, RBI came to the conclusion that the violations as observed during inspection were substantiated, which warranted imposition of monetary penalty on the company,” it added.