MUMBAI: The Reserve Bank today said it has imposed a penalty of Rs 20 lakh on SME lender Religare Finvest for its failure to comply with regulatory directions.
Giving details, the central bank said an inspection of the company was conducted 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," it said.
A Show Cause Notice (SCN) was issued to Religare Finvest on November 7, 2016 for the purpose of imposing penalty, the RBI said.
The Religare Finvest’s response to the SCN was not found to be satisfactory, it said, adding the company was also accorded a personal hearing.
After considering the entire facts of the case and the company's reply, the RBI "came to the conclusion" that the violations "as observed during inspection" were substantiated, which warranted imposition of monetary penalty on the company.
"Accordingly, a penalty of Rs 20 lakh has been imposed on the company," the central bank said.
Religare Finvest (RFL) is a subsidiary of Religare Enterprises Limited (REL).