Reserve Bank of India has levied monetary penalties on IIFL Finance and Appnit Technologies following supervisory findings linked to compliance shortcomings identified during regulatory assessments.
As per the PTI report, the central bank imposed a penalty of ₹3.1 lakh on IIFL Finance for deficiencies linked to regulatory compliance under the Reserve Bank of India’s framework governing non-banking financial companies.
The action followed a statutory inspection conducted with reference to the company’s financial position as of March 31, 2025.
According to RBI, supervisory observations led to a show-cause notice being issued to the company seeking an explanation on why monetary action should not be initiated.
After reviewing the company’s written response and oral submissions during the personal hearing process, the regulator concluded that the observations warranted a financial penalty.
The lapse identified by RBI related to certain instances where surplus proceeds generated from auctions of pledged gold articles were not transferred to borrowers after adjusting outstanding loan dues.
RBI separately imposed a penalty of ₹5.8 lakh on Appnit Technologies for non-compliance linked to Know Your Customer (KYC) norms and Prepaid Payment Instrument (PPI) directions.
The regulator stated that the company had permitted certain PPI accounts opened through Aadhaar OTP-based e-KYC to remain active beyond the permitted period without completing full customer identification requirements.
RBI also observed that the company did not establish a proper framework for periodic review of account risk categorisation.
The central bank clarified that both penalties were based on deficiencies related to statutory and regulatory compliance mechanisms.
RBI further stated that the actions should not be interpreted as commentary on the validity of transactions or agreements entered into between the companies and their respective customers.
Read More: RBI Cancels Registrations of 150 NBFCs Across Multiple States!
As of 15 May 2026, at 3:30 PM, IIFL Finance share price closed at ₹464.95 per share, reflecting a surge of 1.13% from the previous closing price.
The latest actions highlight RBI’s continued focus on strengthening compliance standards across NBFCs and fintech companies through supervisory monitoring and enforcement measures.
Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 18, 2026, 8:59 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN