RBI imposes monetary penalty on Fusion Finance Limited
The Reserve Bank of India (RBI) has, by an order dated August 14, 2026, imposed a monetary penalty of ₹2.70 lakh (Rupees Two Lakh Seventy Thousand only) on Fusion Finance Limited (the company) for non-compliance with certain provisions of ‘Reserve Bank of India (Know Your Customer (KYC)) Directions’ issued by RBI. This penalty has been imposed in exercise of powers conferred on RBI under Section…
On August 14, 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹2.70 lakh on Fusion Finance Limited for failing to adhere to certain Reserve Bank of India (Know Your Customer (KYC)) Directions. This penalty was enforced under Section 58G(1)(b) and Section 58B(5)(aa) of the Reserve Bank of India Act, 1934. The RBI conducted a statutory inspection of Fusion Finance Limited, focusing on the company's financial position as of March 31, 2025.
Following the supervisory findings of non-compliance with the RBI directives, the bank issued a notice asking the company to explain why the penalty should not be imposed due to its failure to comply with the said directions. After evaluating the company's response to the notice and oral submissions during a personal hearing, the RBI found that the company had not established a system for periodic review of risk categorisation of accounts, with the required periodicity being at least once every six months.
This decision was based on deficiencies in regulatory compliance and not on the validity of any transaction or agreement between the company and its customers. The RBI's imposition of this monetary penalty does not prejudge any other possible actions that may be taken by the RBI against the company.
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