The Reserve Bank of India (RBI) has levied a monetary penalty of Rs 6.20 lakh on Northern Arc Capital Limited for non-compliance with certain regulatory requirements concerning financial statement disclosures and the Internal Ombudsman framework.

The penalty was imposed through an order dated August 14, 2026, following a statutory inspection of the company with reference to its financial position as of March 31, 2025.

According to RBI, Northern Arc Capital did not provide accurate and complete details regarding customer complaints in its annual financial statements for FY2024-25. The company was also found to have failed to ensure the automatic escalation of certain complaints that were partly or fully rejected through its internal grievance redressal mechanism to the Internal Ombudsman.

RBI said the penalty was imposed after reviewing the company’s response to the show-cause notice, additional submissions and representations made during a personal hearing.

The central bank clarified that the action relates to regulatory compliance deficiencies and does not question the validity of any transactions or agreements between the company and its customers. The penalty is also without prejudice to any other action that may be initiated by RBI against Northern Arc Capital.