Case Brief
What Happened
In an order dated May 23, 2025, RBI imposed a monetary penalty of ₹40 lakh on Transactree Technologies Private Limited (Lendbox). The action followed a scrutiny in September 2023 and a show-cause process under the RBI Act, 1934. RBI concluded that the company had violated provisions of the Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 by routing disbursed and collected amounts through a co-lending escrow account instead of the prescribed mechanism, not disclosing borrowers’ credit assessment and risk profile to prospective lenders, and disbursing loans without the specific approval of individual lenders.