RBI Fines IIFL Finance and Appnit Technologies for Regulatory Lapses

The Reserve Bank of India has fined IIFL Finance Rs 3.1 lakh for regulatory non-compliance related to the auction of pledged gold articles. Appnit Technologies faces a Rs 5.8 lakh penalty due to KYC and Prepaid Payment Instrument procedural lapses. The penalties address compliance deficiencies, not transaction validity.

The Reserve Bank of India (RBI) announced on Friday the imposition of penalties on IIFL Finance and Appnit Technologies due to lapses in regulatory compliance. IIFL Finance was fined Rs 3.1 lakh for failing to distribute surplus amounts from auctioned gold article loans to certain borrowers.

The Central Bank conducted a statutory inspection based on IIFL Finance's financial position as of March 31, 2025. Following a notice for non-compliance with RBI regulations and subsequent hearings, the lender was found liable for monetary penalties.

Appnit Technologies received a Rs 5.8 lakh penalty for failing to comply with Know Your Customer (KYC) and Prepaid Payment Instrument (PPI) directions, including continued usage of Aadhaar OTP e-KYC without full identification. The RBI clarifies these penalties do not question the validity of any transactions with customers.