Recorded RBI impact
Fine: Rs 2.70 L
Monetary penalty · Fresh imposition
Published by RBI
14 Aug 2026
Case Brief
By an order dated August 14, 2026, RBI imposed a monetary penalty of ₹2.70 lakh on Fusion Finance Limited. The action followed a statutory inspection as of March 31, 2025, and a show-cause notice based on supervisory findings of non-compliance with RBI directions. RBI concluded that the company failed to maintain a system for periodic review of the risk categorisation of accounts at least once every six months, in breach of the RBI’s KYC Directions. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, after considering the company’s reply and oral submissions.
Why RBI Acted
RBI imposed a monetary penalty after supervisory inspection found non-compliance with the Reserve Bank of India (Know Your Customer (KYC)) Directions. The sustained charge was that Fusion Finance Limited failed to put in place a system for periodic review of risk categorisation of accounts, with the periodicity required to be at least once in six months. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, after considering the company’s reply and oral submissions.
Operating Impact
Fusion Finance Limited must absorb the monetary penalty and address the compliance gap in its KYC controls, especially the periodic review of customer risk categorisation. The order does not itself impose an operational ban, but RBI noted that further action may still be initiated separately.
Regulatory Basis
- Section 58G(1)(b)
- Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 2.70 L
- Order Date
- 14 Aug 2026
- Effective From
- 14 Aug 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC