Recorded RBI impact
Monetary penalty
Monetary penalty · Fresh imposition
Published by RBI
7 Aug 2026
Case Brief
RBI imposed a monetary penalty on Infinity Fincorp Solutions Private Limited by order dated August 03, 2026. The penalty was imposed after a statutory inspection and a show-cause process that found the company had not complied with certain provisions of the RBI’s KYC Directions and Fair Practice Code directions. RBI sustained charges that the company failed to periodically review the risk categorisation of accounts at least once in six months and failed to disclose the risk-gradation approach and rationale for different interest rates in application forms and sanction letters. The penalty was imposed under the RBI Act, 1934 and does not pronounce on the validity of any customer transaction or agreement.
Why RBI Acted
RBI imposed a monetary penalty under section 58(G)(1)(b) read with section 58(B)(5)(aa) of the RBI Act, 1934 after a statutory inspection as on March 31, 2025 and subsequent show-cause proceedings. The sustained charges were that the company failed to establish a system for periodic review of the risk categorisation of accounts at least once every six months, and failed to disclose the approach for gradation of risk and the rationale for charging different interest rates to different borrower categories in application forms and sanction letters, contrary to RBI’s KYC Directions and Fair Practice Code directions.
Operating Impact
Infinity Fincorp Solutions Private Limited must absorb the monetary penalty and address the compliance gaps identified by RBI. The findings signal continued supervisory scrutiny, and RBI has expressly reserved the right to initiate any further action it considers appropriate. Customers/borrowers are affected only indirectly through strengthened compliance expectations and disclosures going forward.
Regulatory Basis
- section 58(G)(1)(b) read with section 58(B)(5)(aa) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Monetary penalty
- Order Date
- 3 Aug 2026
- Effective From
- 3 Aug 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC