Reserve Bank of India (the Bank) has the powers to impose penalties on Regulated Entities (REs) under various statutes including the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Payments and Settlement Systems Act, 2007, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Factoring Regulation Act, 2011, the National Housing Bank Act, 1987 and the Credit Information Companies (Regulation) Act, 2005.
Enforcement Department was set up in April 2017 with a view to separate enforcement action from supervisory process and to put in place a structured, rule-based approach to identify and process the violations by the Regulated Entities of the applicable statutes and the rules, regulations and orders made, directions issued, and conditions imposed thereunder (hereinafter collectively referred to as “laws”) by the Bank and enforce the same consistently across the Bank.

Objective:

Process: