RBIFinelow

Northern Arc Capital Ltd

Chennai, India

20 lakh penalty on Northern Arc Capital Ltd for non-compliance with directions on disclosures in financial statements, notes to accounts, and internal ombudsman obligations. A statutory inspection found the NBFC failed to disclose correct and complete information about customer complaints in its annual financial statements for FY24-25. Northern Arc Capital also failed to auto-escalate certain complaints that were partly or wholly rejected by its internal grievance redress mechanism to the internal ombudsman.

20 lakh. The other two NBFCs penalised were Muthoot MCred Ltd and Fusion Finance Ltd.

Implications
  1. NBFCs operating as lending infrastructure providers face regulatory scrutiny on disclosure and ombudsman compliance
  2. Fintech partners relying on NBFC infrastructure should ensure their partners maintain robust compliance programs
Sources
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