RBI Is Cracking Down on NBFCs — Is Your Company Compliance-Ready?
The Reserve Bank of India (RBI) has intensified its scrutiny of Non-Banking Financial Companies (NBFCs)—and the message is loud and clear: compliance is no longer negotiable.
In the past year, RBI has taken action against some of the biggest names in the NBFC sector for serious lapses across operations, lending, and regulatory reporting.
Who Was Barred and Why?
Several well-known NBFCs, including DMI Finance, Asirvad Micro Finance, Navi Finserv, and Arohan, were restricted from issuing fresh loans due to:
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Unjustified interest rates
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Inadequate assessment of borrower income
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Violation of asset classification norms
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Non-compliance in outsourcing and disclosure practices
Widespread Penalties:
RBI also penalized 37 NBFCs for breaches related to:
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KYC (Know Your Customer) & AML (Anti-Money Laundering) gaps
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Non-compliance with digital lending norms
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Delays in fraud reporting and cybersecurity updates
Even large players like Shriram Finance faced penalties for allowing third-party accounts in repayment transactions, directly violating RBI’s digital lending guidelines.
The Takeaway for NBFCs
This wave of regulatory enforcement highlights one key reality:
Even minor compliance oversights can result in bans, hefty fines, and loss of reputation.
NBFCs must now go beyond minimal regulatory filings—they must embed robust compliance systems across digital lending operations, customer handling, risk assessment, and reporting procedures.
Stay Ahead of RBI Scrutiny
We specialize in helping NBFCs ensure full RBI compliance—from routine filings and audits to digital lending framework readiness and inspection preparedness.
📞 Book a Free Consultation Today: +91 93113 47006