Finquest Financial Solutions Private Limited

Following a statutory inspection with reference to its financial position as on March 31, 2021, and examination of the related Risk Assessment Report, RBI found that Finquest Financial Solutions Private Limited had not conducted risk categorization of borrowers, had not made good the shortfall in the 50% loan-to-value ratio within 7 working days for loans granted against collateral of shares, and had not reported data to all CICs as per extant guidelines. RBI issued a show-cause notice and, after considering the company’s reply, concluded that the contraventions of the RBI directions were substantiated and warranted a monetary penalty under Section 58G read with Section 58B(5)(aa) of the RBI Act, 1934.

Finquest Financial Solutions Private Limited must bear the monetary penalty; the release does not impose a restriction on its ongoing business operations. The action is a compliance sanction and does not itself invalidate customer transactions or agreements.