Monetary Penalty on Asset Care & Reconstruction Enterprise Limited · 2026-2027/1105
RBI press-release 2026-2027/1105 · 11 Sept 2026
Official title
RBI imposes monetary penalty on Asset Care & Reconstruction Enterprise Limited
RBI press-release 2026-2027/1105 · 11 Sept 2026
Official title
RBI imposes monetary penalty on Asset Care & Reconstruction Enterprise Limited
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹27.30 lakh on Asset Care & Reconstruction Enterprise Limited. The company failed to comply with RBI directions regarding Income Recognition. The company violated regulatory requirements for charging management fees. The RBI conducted a statutory inspection of the company financial position as of March 31, 2025. The RBI issued a show cause notice to the company. The company provided a reply and made oral submissions during a personal hearing. The RBI sustained the charge of non-compliance after review. This action does not affect the validity of any transaction or agreement between the company and its customers.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
September 11, 2026
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 under the provisions of section 12 read with section 30A(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.
After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty:
The company had violated regulatory requirement with respect to charging of management fees.
This action is based on 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/1105
ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
संचार िवभाग, कᱶᮤीय कायार्लय, शहीद भगत ᳲसंह मागर्, फोटर्, मुंबई - 400 001
Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001
वेबसाइट : www.rbi.org.in/hindi
Website : www.rbi.org.in
ई-मेल/email : helpdoc@rbi.org.in
फोन/Phone: 022 - 2266 0502