RBI imposes monetary penalty on Asset Care & Reconstruction Enterprise Limited
The Reserve Bank of India (RBI) has, by an order dated September 08, 2026, imposed a monetary penalty of ₹27.30 lakh (Rupees Twenty Seven Lakh Thirty Thousand only) on Asset Care & Reconstruction Enterprise Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Income Recognition’. This penalty has been imposed in exercise of powers conferred on RBI…
On September 8, 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹27.30 lakh on Asset Care & Reconstruction Enterprise Limited for not complying with certain directions on 'Income Recognition'. This penalty was imposed under the powers conferred by Section 12 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, in conjunction with Section 30A(1) of the same Act.
The RBI conducted a statutory inspection of the company's financial position as of March 31, 2025, based on its supervisory findings of non-compliance with RBI directions. The company was served with a notice advising it to explain its failure to comply with the said directions. Following a review of the company's reply, additional submissions, and oral submissions during a personal hearing, the RBI found that the company had violated regulatory requirements related to the charging of management fees.
This action is solely aimed at addressing deficiencies in regulatory compliance and does not comment on the validity of any transaction or agreement with customers. The monetary penalty is imposed without prejudice to any other potential actions that the RBI might take against the company.
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.
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