The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on Pinnacle Capital Solutions Private Limited, a digital lending company based in Jharkhand, for violating RBI guidelines related to Default Loss Guarantee (DLG) in digital lending.
According to an RBI order dated December 9, 2025, the action was taken after the central bank examined the company’s digital lending operations. During the scrutiny, RBI found that the company had obtained a Default Loss Guarantee from a Lending Service Provider that exceeded the permitted limit of 5% of the outstanding loan portfolio, which is against RBI rules.
Following the findings, RBI issued a show-cause notice to the company, asking why a penalty should not be imposed. The company submitted a written reply and also presented its case during a personal hearing. After reviewing the responses, RBI concluded that the violation had occurred and decided to impose the penalty.
RBI clarified that the penalty has been imposed due to regulatory non-compliance and does not comment on the validity of any transactions or agreements between the company and its customers. The central bank also said that this penalty does not rule out further action against the company, if required.
The move highlights RBI’s continued focus on tight regulation of digital lending practices to protect borrowers and ensure transparency in the financial system.
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