RBI imposes monetary penalty on GoCapital Finance Limited, Chennai, Tamil Nadu

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹ 1.00 lakh on GoCapital Finance Limited, Chennai, Tamil Nadu, for non-compliance with certain provisions of ‘Master Direction- Reserve Bank of India (Non- Banking Financial Company -Scale Based Regulation) Directions, 2023’. The RBI found that the company failed to obtain prior written permission for effecting a change in management, resulting in a change of more than 30 per cent of its directors. This action is based on deficiency 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. The imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.

The penalty was imposed after considering the company's reply to a notice issued advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions. The RBI also considered oral submissions made by the company during personal hearing. The charges against the company were sustained, warranting the imposition of monetary penalty.