Regulatory Alerts2026-08-07
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RBI imposes monetary penalty on Infinity Fincorp Solutions Private Limited
The Reserve Bank of India imposed a monetary penalty of ₹5.40 lakh on Infinity Fincorp Solutions Private Limited for non-compliance with the Reserve Bank of India (Know Your Customer (KYC)) Directions and Fair Practice Code directions. The penalty addresses the company's failure to implement a periodic risk categorization review system at least once every six months and its omission of risk gradation approaches and interest rate rationales in application forms and sanction letters. This action is based on supervisory findings from a statutory inspection conducted with reference to the company's financial position as of March 31, 2025.
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( 307 kb ) Date : Aug 07, 2026 RBI imposes monetary penalty on Infinity Fincorp Solutions Private Limited
The Reserve Bank of India (RBI) has, by an order dated August 03, 2026, imposed a monetary penalty of ₹5.40 lakh (Rupees Five lakh forty thousand only) on Infinity Fincorp Solutions Private Limited (the company) for non-compliance with certain provisions of the ‘Reserve Bank of India (Know Your Customer (KYC)) Directions’ and the directions issued by RBI on ‘Fair Practice Code’. This penalty has been imposed in exercise of powers conferred on RBI under section 58(G)(1)(b) read with section 58(B)(5)(aa) of the Reserve Bank of India Act, 1934.
The Statutory Inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions.
After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found that the following charges against the company were sustained, warranting imposition of monetary penalty:
i. The company failed to put in place a system of periodic review of risk categorisation of accounts, with such periodicity being at least once in six months; and
ii. The company failed to disclose the approach for gradation of risk and rationale for charging different rate of interest to different categories of borrowers in the application forms and the sanction letters.
The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/841
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