RBI imposes monetary penalty on IGH Holdings over non-compliances

Mumbai (Maharashtra) [India], March 17 (ANI): The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 11.25 lakh on IGH Holdings Private Limited, Mumbai (the company) for some non-compliance with the provisions of RBI Act, among some others.

In a release, RBI said the action is based on the 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. According to publicly available information, IGH Holdings Private Limited is majorly in the transport, storage, and communications business. The action against the entity was based on the “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”, RBI said in the release.

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2021 and examination of the Risk Assessment Report, Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed that the company failed to comply with the statutory requirement of transferring 20 per cent of the net profit as disclosed in its profit and loss account for the financial year 2020-21 to the Reserve Fund; become member of three out of four CICs; and furnish any credit information to even the CIC, of which it was a member.

Against that backdrop, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the provisions of the RBI, among others.