RBI Imposes 30k Penalty on Vedvyas Finance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹30,000 on Vedvyas Finance Private Limited, based in Odisha. The Press Release dated 23rd March, 2026, cites non-compliance with RBI directions related to governance. 

Legal Provisions Invoked 

The penalty has been imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934. 

Background and Proceedings 

The issue came to light through correspondence related to the intimation of the appointment of a director, which revealed non-compliance with RBI’s directions. Based on these findings, RBI issued a notice to the company asking it to explain why a penalty should not be imposed. 

The company submitted a reply and also made oral submissions during a personal hearing. After reviewing these, RBI concluded that the charge against the company was sustained. 

Key Violation Identified 

• The company failed to obtain prior written permission from RBI before appointing a director.
• This resulted in a change in management due to more than 30% of its directors (excluding independent directors) being replaced.