IIFL Finance has been penalised ₹3,10,000 by the Reserve Bank of India (RBI) for non-compliance with certain provisions of the ‘Master Direction- Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023’.
The penalty was imposed by the RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934. According to the communication received from the RBI’s Enforcement Department, the penalty relates to deficiencies observed during a statutory inspection of IIFL Finance, referencing the company’s financial position as of March 31, 2025.
The RBI’s inspection found that IIFL Finance failed to pay the surplus amount realised from the auction of pledged gold articles, over and above the loan outstanding, to certain borrowers. Despite the penalty, IIFL Finance stated that there is no material impact on its financial, operational, or other activities.
IIFL Finance has already remitted the penalty amount to the RBI on May 16, 2026, and has submitted confirmation of the payment to the regulatory body.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).