Money & Banking

RBI imposes ₹25.50 lakh penalty on Jaipur-based Jumbo Finvest (India) Ltd

Our Bureau Mumbai | Updated on May 04, 2021

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹25.50 lakh on Jumbo Finvest (India) Ltd, Jaipur, for non-compliance with provisions of two of its directions.

RBI, in a statement, said the monetary penalty has been imposed for non-compliance with certain provisions of its directions contained in ‘Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ and ‘Reserve Bank of India, Know Your Customer (KYC) Directions, 2016’.

“This penalty has been imposed in exercise of powers vested in RBI under the provisions of…the Reserve Bank of India Act, 1934, taking into account the failure of the company to adhere to the aforesaid directions issued by RBI,” the statement said.

The 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, it added.

The central bank observed that the statutory inspection of Jumbo Finvest (India) with reference to its financial position as on March 31, 2019, revealed, inter alia, non-compliance with above mentioned directions issued by RBI.

In furtherance to the same, RBI said a notice was issued to the company advising it to show cause as to why penalty should not be imposed for failure to comply with the directions issued by RBI.

“After considering the company’s reply to the notice, RBI came to the conclusion that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” the central bank added.

Published on May 04, 2021

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