Recorded RBI impact
Monetary penalty
Monetary penalty · Fresh imposition
Published by RBI
7 Mar 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹10 lakh on Bridge Fintech Solutions Private Limited (Finzy) by order dated March 04, 2025. RBI said the company had failed to comply with certain provisions of the NBFC-Peer to Peer Lending Platform Directions, 2017, based on supervisory findings from a September 2023 scrutiny, a show-cause notice, and the company’s written and oral submissions. The sustained violations included disbursing loans to individual borrowers without the specific approval of individual lenders, taking partial credit risk not permitted under the scope of activities for NBFC-P2P companies, shortcomings in service-provider agreements and annual review requirements, and inadequate periodic review of the Fair Practices Code and Grievances Redressal Mechanism. RBI clarified that the penalty was without prejudice to any other action it may initiate.
Why RBI Acted
RBI imposed a monetary penalty under Section 58G read with Section 58B(5)(aa) of the RBI Act, 1934 after a scrutiny conducted in September 2023 and subsequent show-cause proceedings. RBI found sustained charges that Bridge Fintech Solutions Private Limited (Finzy) disbursed loans to individual borrowers without the specific approval of individual lenders, took partial credit risk beyond the permitted scope of activities for NBFC-P2P companies, failed in certain instances to include RBI inspection-recognition clauses in service-provider agreements and to conduct annual review of service providers, and did not conduct periodic review of compliance with the Fair Practices Code and the functioning of the Grievances Redressal Mechanism.
Operating Impact
Finzy must absorb the monetary penalty and remain exposed to any further supervisory or enforcement action RBI may choose to take. The order does not itself impose an operational restriction, but it records compliance failures affecting lending process controls, outsourcing oversight, fair practices, and grievance redressal for the platform and its counterparties/customers.
Regulatory Basis
- Section 58G(1)(b) of the Reserve Bank of India Act, 1934
- Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
- Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017
Action Facts
- Primary Impact
- Monetary penalty
- Order Date
- 4 Mar 2025
- Effective From
- 4 Mar 2025
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Finzy