RBI imposes monetary penalty on Avail Financial Services Limited

July 17, 2026

RBI imposes monetary penalty on Avail Financial Services Limited

The Reserve Bank of India (RBI) has, by an order dated July 10, 2026, imposed a monetary penalty of ₹6.20 lakh (Rupees Six Lakh Twenty Thousand only) on Avail Financial Services Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Governance’ and ‘Credit/Investment Concentration Norms’. This penalty has been imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions.

After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found that the following charges against the company were sustained, warranting imposition of monetary penalty:

i. The Managing Director of the company held directorship in two other NBFCs- Middle Layer. ii. The company had breached the regulatory single party exposure limit.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.

(Brij Raj)

Press Release: 2026-2027/703 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE

भारतीय ᳯरज़वर् बᱹक

RESERVE BANK OF INDIA

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