Non-compliance with NBFC regulations in India can lead to severe consequences, including penalties and legal action by the regulatory authority, the Reserve Bank of India (RBI). The penalties for non-compliance can result in monetary fines, cancellation of registration, and even criminal prosecution. The severity of the violation determines the amount of the penalty, which can range from a few lakh rupees to several crores. Apart from imposing penalties, the RBI can take additional measures like restricting the NBFC's business operations, removing its directors, or appointing a management team to run the company. Therefore, NBFCs operating in India must comply with the regulatory framework to avoid any adverse actions by the RBI.