Innofin Solutions Private Limited

RBI imposed a monetary penalty after scrutiny found sustained charges of non-compliance with the Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 and the Guidelines on Digital Lending. The company allegedly did not disclose required borrower information such as credit assessment and risk profile to prospective lenders, disbursed loans without specific approval of individual lenders, routed disbursed and collected amounts through a co-lending escrow account contrary to the prescribed fund transfer mechanism, and allowed Merchant Finance Loan repayments to be routed through a third-party nodal account acting as a Lending Service Provider. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.

The company must absorb the monetary penalty and address the compliance gaps identified by RBI. The release does not order an operational restriction, but it signals potential for further supervisory or enforcement action if the deficiencies persist. Borrowers, lenders and payment intermediaries involved in the P2P and lending flows may be affected by any remedial compliance measures the company implements.