Regulatory Penalty Imposed on Non-Banking Lender

The Reserve Bank of India announced that it has levied a monetary penalty amounting to ₹5.40 lakh on Infinity Fincorp Solutions Private Limited. The enforcement action follows a statutory inspection conducted by the central banking institution to evaluate the financial status of the firm as of March 31, 2025. Following the supervisory findings, the regulator identified regulatory non-compliance linked to established directions.

Details of the Compliance Failures

According to the official release, the central bank initiated proceedings by serving a show-cause notice to the company after uncovering discrepancies during the inspection process. Upon reviewing the written response and listening to the oral submissions presented during a personal hearing, the authority concluded that specific charges against the lending institution were substantiated.

The violations identified by the regulatory authority include:

• Failure to establish an adequate system for the periodic review of risk categorisation of customer accounts at least once every six months.
• Failure to properly disclose the approach used for risk gradation along with the rationale behind charging varying interest rates to different borrower categories within application forms and sanction letters.

Scope and Legal Limitations of the Action

The central bank clarified that the penalty is strictly rooted in regulatory compliance deficiencies identified during supervision. The enforcement measure does not constitute a judgment on the legality, validity, or terms of any financial transactions or agreements executed between the company and its customers.

Furthermore, the financial penalty remains without prejudice to any additional regulatory or legal measures that the Reserve Bank of India may choose to initiate against the company in the future.

Primary source: This independent news summary is based on official information from Reserve Bank of India. Read the original document for complete details.