The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 30,000 on Vedvyas Finance Private Limited, Odisha, for non-compliance with regulatory directions related to governance.

The penalty, issued through an order dated March 16, 2026, has been levied under the provisions of the Reserve Bank of India Act, 1934, following supervisory findings.

The RBI observed that the company failed to obtain prior written approval from the central bank while appointing a director, which led to a change in more than 30 per cent of its board (excluding independent directors), thereby constituting a violation of regulatory norms.

After issuing a show-cause notice and considering the company’s response along with oral submissions, the RBI concluded that the charge was sustained, warranting the penalty.

The central bank clarified that the action is based on deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements entered into by the company. It also stated that the penalty is without prejudice to any further action that may be taken.