RBI imposes monetary penalty on Northern Arc Capital Limited

The Reserve Bank of India (RBI) has, by an order dated August 14, 2026, imposed a monetary penalty of ₹6.20 lakh (Rupees Six Lakh Twenty Thousand only) on Northern Arc Capital Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Disclosures in Financial Statements - Notes to Accounts’ and on ‘Internal Ombudsman for Regulated Entities’. This penalty…

rbi.org.in ·14h ago

On August 14, 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹6.20 lakh on Northern Arc Capital Limited for failing to comply with specific provisions related to disclosures in financial statements and the role of an Internal Ombudsman. This penalty was implemented following a statutory inspection of the company's financial health as of March 31, 2025.

The RBI's supervisory findings revealed non-compliance with the RBI's directives, leading to a notice being sent to the company to explain why it should not be penalized for not adhering to these rules. After the company's response, additional submissions, and oral arguments during a personal hearing, the RBI determined that the company had been found in violation of two key charges.

These included the failure to disclose complete and accurate information regarding customer complaints in its 2024-25 Annual Financial Statements and the lack of ensuring that certain complaints partially or entirely rejected by the company's Internal Grievance Redress Mechanism were escalated to the Internal Ombudsman. The RBI's actions are aimed at enforcing regulatory compliance, distinct from any judgment on the transactions or agreements the company made with its customers.

Importantly, this penalty does not preclude the RBI from taking further actions against the company, should they deem necessary.

Written by urgent.news from Reserve Bank of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.