The Reserve Bank of India (RBI) has levied a monetary penalty of Rs 8.10 lakh on Shri Ram Finance Corporation Private Limited for violating certain provisions related to governance and Know Your Customer (KYC) requirements.

The penalty, imposed through an order dated August 19, 2026, follows a statutory inspection of the company with reference to its financial position as of March 31, 2025.

RBI found that the company had failed to obtain prior written approval before appointing a director that resulted in a change of more than 30 per cent of its directors, excluding independent directors. It also failed to establish a system for categorising customers into low, medium and high-risk categories and did not upload certain customers' KYC records to the Central KYC Records Registry within the stipulated timeframe.

The central bank clarified that the action pertains to regulatory compliance shortcomings and does not affect the validity of transactions or agreements entered into by the company with its customers.