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RBI imposes Rs 5 lakh penalty on Nissan Renault Financial Services India

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MUMBAI: The Reserve Bank of India has imposed a penalty of Rs 5 lakh on Chennai-based Nissan Renault Financial Services India Private Limited for non-compliance with the central financial institution’s instructions.

In an announcement on Wednesday, RBI mentioned the penalty has been imposed for non-compliance with its instructions contained in Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 on Fair Practices Code for relevant NBFCs.

The statutory inspection of Nissan Renault Financial Services India close to its monetary place as on March 31, 2019, revealed, inter alia, non-compliance with the RBI instructions.

The apex financial institution mentioned a discover was issued to the corporate advising it to point out trigger as to why penalty shouldn’t be imposed for failure to adjust to the instructions issued by it.

“After considering the company’s reply to the notice and examination of additional documents provided by the company, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty,” it mentioned.

According to the central financial institution, the motion has been taken on account of deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the corporate with its prospects.

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