The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹27.30 lakh on Asset Care & Reconstruction Enterprise Limited (ACRE) for violating regulatory requirements relating to the charging of management fees. According to reports from Business Standard, the penalty was imposed through an order dated September 8, 2026, following the central bank's statutory inspection of the asset reconstruction company (ARC) with reference to its financial position as of March 31, 2025.
RBI's supervisory review found non-compliance with directions on income recognition during its examination of ACRE's operations. As reported by Business Standard, after examining ACRE's response to the show-cause notice, further submissions and representations made during a personal hearing, the regulator concluded that the charge relating to management fees was established. The penalty has been imposed under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
RBI has clarified that the action relates to regulatory compliance deficiencies and should not be construed as a finding on the validity of any transaction or agreement entered into by ACRE with its customers. According to Business Standard, the central bank also stated that the penalty does not preclude it from taking any other action against the company in the future.
In a separate development, RBI Governor Sanjay Malhotra announced that nearly 50% of Foreign Currency Non-Resident (Bank), or FCNR(B), deposits mobilised under the RBI's concessional swap facility were for a five-year tenure. As reported by CNBC-TV18, Malhotra stated that 48.50% is five-year, about 42% is three-year and up to four years, and the remaining about 9% is in the four to five-year window. The FCNR(B) window closed on August 31, 2026, with banks having mobilised $127.2 billion in total deposits, significantly exceeding late market expectations of $90-100 billion.
