**Executive Summary**
This press release, dated February 13, 2026, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹5.30 lakh on IIFL Finance Limited for non-compliance with RBI directions regarding ‘Asset Classification.’ This penalty was imposed following a statutory inspection with reference to the company's financial position as on March 31, 2024. The penalty is enacted under specific sections of the Reserve Bank of India Act, 1934.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI has imposed a monetary penalty of ₹5.30 lakh on IIFL Finance Limited.
* The order was issued on February 06, 2026.
* **Reason for Penalty:**
* The penalty is for non-compliance with certain RBI directions on ‘Asset Classification.’
* The company failed to classify certain accounts as ‘non-performing assets’ on restructuring.
* **Authority and Legal Basis:**
* The penalty is imposed under powers conferred on RBI by section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
* **Inspection and Notice:**
* The statutory inspection of the company was conducted with reference to its financial position as on March 31, 2024.
* RBI had issued a notice to the company advising it to show cause as to why the penalty should not be imposed.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance.
* It is not intended to pronounce upon the validity of any transaction between the company and its customers.
* The penalty is without prejudice to any other action that may be initiated by RBI against the company.
**Impact Analysis**
**IIFL Finance Limited**
* **Impact**
* Incurrence of monetary penalty of ₹5.30 lakh.
* Potential impact on reputation and investor confidence.
* Increased scrutiny from RBI.
* **Action Required**
* Ensure compliance with RBI directions on ‘Asset Classification.’
* Implement corrective measures to prevent future non-compliance.
* Respond to any further actions initiated by RBI.
**RBI**
* **Impact**
* Enforcement of regulatory compliance within the financial sector.
* Demonstration of supervisory oversight.
* **Action Required**
* Monitor IIFL Finance Limited for continued compliance.
* Take further action as necessary.
Key Entities Referenced
Reserve Bank of India Act, 1934: Governing law cited as the source of power for imposing the penalty.
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
IIFL Finance Limited: The entity on which the monetary penalty is imposed.
Section 58G(1)(b): Section of the Reserve Bank of India Act, 1934 mentioned as conferring powers to RBI.
Section 58B(5)(aa): Section of the Reserve Bank of India Act, 1934 mentioned as conferring powers to RBI.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 13, 2026
RBI imposes monetary penalty on IIFL Finance Limited
The Reserve Bank of India (RBI) has, by an order dated February 06, 2026,
imposed a monetary penalty of ₹5.30 lakh (Rupees Five Lakh Thirty Thousand only)
on IIFL Finance Limited (the company) for non-compliance with certain directions
issued by RBI on ‘Asset Classification’. 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, 2024. Based on 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 its failure to comply with the said direction.
After considering the company’s reply to the notice, oral submissions made during
the personal hearing and additional submissions made by it, RBI found that the
following charge against the company was sustained, warranting imposition of
monetary penalty:
The company failed to classify certain accounts as ‘non-performing asset’, on
restructuring.
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: 2025-2026/2112 Chief General Manager