RBI Penalises Valuecorp for Compliance Breaches

On 29 December 2025, the Reserve Bank of India announced a monetary penalty of ₹2.40 lakh on Valuecorp Securities & Finance Limited. The penalty was imposed by an order dated 23 December 2025 for non-compliance with RBI directions relating to submission of data to Credit Information Companies, transfer of loan exposure, and Know Your Customer requirements.

The action followed a statutory inspection of the company with reference to its financial position as of 31 March 2024. Based on supervisory findings and related correspondence, the company was issued a notice to show cause why a penalty should not be imposed. After considering the company’s written reply and oral submissions made during a personal hearing, RBI concluded that the non-compliance was sustained and warranted the imposition of a monetary penalty.

RBI stated that the company failed to submit credit information of its customers to any Credit Information Company, transferred a loan exposure to an entity other than a permitted entity, failed to assign Unique Customer Identification Codes to customers, and failed to carry out customer risk categorisation.

RBI clarified that the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement between the company and its customers. It also noted that the penalty is without prejudice to any other action that may be initiated against the company.

Source: Reserve Bank of India