RBI levies penalty of Rs. 1 crore on Spice Money Limited for not maintaining net worth of Rs. 100 crore

Reserve Bank of India (RBI) has passed an order on 7th December, 2021 in the name of Spice Money Limited (SML), a material subsidiary of DiGiSPICE Technologies Limited, imposing a penalty of Rs. 1 crore on SML for a shortfall in maintaining the net worth of at least Rs. 100 crore as required in terms of "Implementation of Bharat Bill Payment System Guidelines" (BBPS Guidelines) between March 31, 2019 to May 30, 2021.

The shortfall in net worth had arisen due to the demerger of the Non-Fintech business from the SML in the company in June, 2019. The primary reason of shortfall was pertaining to a specific item arising out of the said demerger reason of shortfall was pertaining to a specific item arising out of the said demerger which SML has treated as part of its net worth as per generally accepted accounting principles. To ensure a strict compliance of the guidelines laid down by the RBI, additional capital was infused from the holding company in May 2021 and the required net worth has been maintained since then as per the interpretation of net worth given by RBI.

Shares of DiGiSPICE Technologies Limited was last trading in BSE at Rs. 38.85 as compared to the previous close of Rs. 38.25. The total number of shares traded during the day was 31285 in over 223 trades.

The stock hit an intraday high of Rs. 39.65 and intraday low of 37.65. The net turnover during the day was Rs. 1215727.00.

Source : Equity Bulls

Keywords

DiGiSPICETechnologies SPICEMoney INE927C01020 RBIPenalty 1Crore