What changed

The Reserve Bank of India (RBI) has fined Vedvyas Finance Private Limited ₹30,000 for violating governance norms. Specifically, the company failed to secure RBI's prior written approval before appointing a director, which constituted a change in more than 30% of its directors. This action stems from deficiencies in regulatory compliance and highlights the RBI's oversight of management changes within financial entities.

Financial institutions must ensure strict adherence to RBI directives regarding director appointments and management changes. Failure to obtain necessary prior approvals can result in monetary penalties. Compliance officers should review internal policies and procedures related to board composition and appointment processes to prevent similar violations and ensure timely notification and approval from the RBI.

What to do next

Review internal policies for director appointment and management change notification procedures.
Ensure all director appointments requiring RBI approval are submitted and approved prior to the change.
Verify compliance with RBI governance directions regarding board composition.

Penalties

₹30,000

Source document (simplified)

Press Releases

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| Date : Mar 23, 2026 | |
| RBI imposes monetary penalty on Vedvyas Finance Private Limited, Odisha | |
| | The Reserve Bank of India (RBI) has, by an order dated March 16, 2026, imposed a monetary penalty of ₹30,000/- (Rupees Thirty Thousand Only) on Vedvyas Finance Private Limited, Odisha (Company) for non-compliance with certain -directions issued by RBI on ‘Governance’. This penalty has been imposed in exercise of powers conferred on RBI under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.

The correspondence pertaining to the intimation of appointment of a director, revealed non-compliance with RBI directions. Based on the same, 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, oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the Company was sustained, warranting imposition of monetary penalty:

The company had failed to take prior written permission of the RBI while appointing a director resulting in change in its management on account of change in more than 30 per cent of its directors, excluding independent directors.

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. 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: 2025-2026/2309 | | The Reserve Bank of India (RBI) has, by an order dated March 16, 2026, imposed a monetary penalty of ₹30,000/- (Rupees Thirty Thousand Only) on Vedvyas Finance Private Limited, Odisha (Company) for non-compliance with certain -directions issued by RBI on ‘Governance’. This penalty has been imposed in exercise of powers conferred on RBI under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.

The correspondence pertaining to the intimation of appointment of a director, revealed non-compliance with RBI directions. Based on the same, 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, oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the Company was sustained, warranting imposition of monetary penalty:

The company had failed to take prior written permission of the RBI while appointing a director resulting in change in its management on account of change in more than 30 per cent of its directors, excluding independent directors.

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. 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: 2025-2026/2309 |
| The Reserve Bank of India (RBI) has, by an order dated March 16, 2026, imposed a monetary penalty of ₹30,000/- (Rupees Thirty Thousand Only) on Vedvyas Finance Private Limited, Odisha (Company) for non-compliance with certain -directions issued by RBI on ‘Governance’. This penalty has been imposed in exercise of powers conferred on RBI under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.

The correspondence pertaining to the intimation of appointment of a director, revealed non-compliance with RBI directions. Based on the same, 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, oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the Company was sustained, warranting imposition of monetary penalty:

The company had failed to take prior written permission of the RBI while appointing a director resulting in change in its management on account of change in more than 30 per cent of its directors, excluding independent directors.

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. 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: 2025-2026/2309 | |