RBI Tightens the Reins on NBFCs — Is Your Company Ready for Compliance Scrutiny?
India’s financial watchdog, the Reserve Bank of India (RBI), is stepping up its enforcement measures against Non-Banking Financial Companies (NBFCs). Recent regulatory actions prove that compliance failures—big or small—can no longer be overlooked.
Over the past year, the RBI has taken strong measures against several well-known NBFCs, signaling the need for tighter controls and robust governance.
Loan Bans on Leading NBFCs
NBFCs such as DMI Finance, Navi Finserv, Asirvad Micro Finance, and Arohan have been barred from issuing fresh loans due to:
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Charging unjustifiably high interest rates
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Insufficient assessment of borrower income
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Violation of asset classification standards
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Operational lapses in outsourcing and mandatory disclosures
Sector-Wide Penalties Imposed
The crackdown didn’t stop there. RBI also fined 37 NBFCs for:
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KYC and Anti-Money Laundering (AML) failures
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Non-adherence to digital lending rules
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Delayed reporting of cybersecurity breaches and fraud cases
Even major players like Shriram Finance were penalized for accepting repayments through third-party accounts, breaching RBI’s digital lending protocol.
The Takeaway: Compliance Is Critical
These enforcement actions highlight an urgent reality:
Compliance cannot be an afterthought. Even minor missteps can result in major regulatory setbacks.
NBFCs must be proactive—strengthening internal systems, reviewing digital lending workflows, and ensuring full alignment with RBI’s ever-evolving regulatory landscape.
Stay Ahead of RBI Action
We work closely with NBFCs and fintech firms to establish end-to-end compliance—from KYC, AML, and digital lending regulations to audit preparation and regulatory inspections.
📞 Book your free compliance consultation today: +91 93113 47006