The Reserve Bank of India (RBI) has imposed monetary penalties on six non-banking financial companies (NBFCs) for violating various regulatory rules. The penalties were imposed after RBI’s statutory inspections based on the companies’ financial position as of March 31, 2025. RBI clarified that these actions relate only to regulatory compliance and do not affect the validity of any transactions between the companies and their customers.
₹6.20 Lakh Penalty on Avail Financial Services
RBI imposed a penalty of ₹6.20 lakh on Avail Financial Services Limited through an order dated July 10, 2026. The company was found to have violated RBI’s governance and credit/investment concentration norms. RBI found that the company’s Managing Director was serving as a director in two other Middle Layer NBFCs, which is against the rules. The company was also found to have exceeded the regulatory limit for exposure to a single party.
₹2.70 Lakh Penalty on Muthoot Vehicle and Asset Finance
RBI imposed a penalty of ₹2.70 lakh on Muthoot Vehicle and Asset Finance Limited through an order dated July 13, 2026. The company failed to carry out periodic reviews of the risk categorisation of customer accounts at least once every six months, as required under RBI’s Know Your Customer (KYC) Directions.
₹2.70 Lakh Penalty on Dhani Loans and Services
RBI also imposed a penalty of ₹2.70 lakh on Dhani Loans and Services Limited through an order dated July 15, 2026. The company failed to classify certain loan accounts as Non-Performing Assets (NPAs), which violated RBI’s asset classification guidelines.
₹3.10 Lakh Penalty on PAN Emami Cosmed
PAN Emami Cosmed Limited, formerly known as Midkot Investments Private Limited, was fined ₹3.10 lakh through an order dated July 13, 2026. RBI found that the company had exceeded the prescribed regulatory limit for credit exposure to a single group of related parties.
₹3.10 Lakh Penalty on Satya MicroCapital
RBI imposed a penalty of ₹3.10 lakh on Satya MicroCapital Limited through an order dated July 13, 2026. The company failed to classify certain restructured loan accounts as Non-Performing Assets (NPAs), which was a violation of RBI’s asset classification rules.
₹5.80 Lakh Penalty on Muthoot Finance
Muthoot Finance Limited was fined ₹5.80 lakh through an order dated July 10, 2026, for violating RBI’s KYC Directions. RBI found that the company did not regularly review the risk categorisation of customer accounts. It also failed to implement a strong software system for identifying and reporting suspicious financial transactions.
RBI Clarifies the Purpose of the Penalties
RBI said that before imposing the penalties, it issued notices to all the companies and gave them an opportunity to respond and present their case. After reviewing their replies and submissions, RBI decided to impose the penalties. The central bank also clarified that these actions are only for regulatory violations and do not affect customer transactions or agreements. RBI may take further action against the companies if required under the law.
