Faircent

RBI imposed a monetary penalty on Fairassets Technologies India Private Limited (also referred to as Faircent) after a scrutiny and show-cause process found sustained non-compliance with the Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017. The specific findings included disbursing loans without the specific approval of individual lenders, failing to undertake and disclose credit assessment and risk profile of borrowers to prospective lenders, taking partial credit risk by foregoing the management fee partly/fully contrary to the permitted scope of activities for NBFC-P2P companies, and not complying with RBI’s directions on the fund transfer mechanism by allowing repayments to lenders from fresh funds or pooled repayments rather than from a specific borrower to a specific lender. The penalty was imposed under Section 58G read with Section 58B(5)(aa) of the RBI Act, 1934.

Faircent must absorb the monetary penalty and address the compliance deficiencies identified by RBI. The release does not impose a new operational ban, but it signals continued supervisory exposure and possible further RBI action if the same or related breaches persist. No direct impact on customer contracts is stated, though the findings relate to borrower-lender disclosures and repayment mechanics on the platform.