RBI Imposes ₹27.30 Lakh Penalty on ACRE for Non-compliance with Income Recognition Norms
Moneylife Digital Team 15 September 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹27.30 lakh on Asset Care & Reconstruction Enterprise Ltd (ACRE), an asset reconstruction company (ARC), for non-compliance with certain provisions of RBI directions on income recognition.
 
RBI's statutory inspection of ACRE, conducted with reference to its financial position as of 31 March 2025, revealed that the ARC had violated regulatory requirements regarding the charging of management fees.
 
After considering ACRE's reply to the notice, oral submissions made during the personal hearing, and the additional submissions made by it, RBI says the charges against the ARC are sustained and warrant the imposition of a monetary penalty.
 
However, the banking regulator clarified that its action against Asset Care & Reconstruction Enterprise is based on regulatory compliance deficiencies and is not intended to pronounce on the validity of any transactions or agreements entered into by the ARC with its customers. Further, imposition of a monetary penalty is without prejudice to any other action that may be initiated against the ARC, RBI added.
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