Case Brief
The Reserve Bank of India imposed a monetary penalty on KLM Axiva Finvest Limited by order dated September 22, 2026. The penalty was levied after a statutory inspection and subsequent show-cause proceedings, on the ground that the company had not complied with RBI directions on ‘Auction’ procedure. RBI sustained the charge that the company failed to remit surplus realised from the auction of pledged gold articles, over and above the loan outstanding, to certain borrowers. The action was taken under Section 58-G(1)(b) read with Section 58-B(5)(aa) of the RBI Act, 1934.
Action Snapshot
- Primary Impact
- Fine: Rs 2.70 L
- Entity Type
- NBFC
- Action Type
- Monetary penalty