**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. The penalty was issued on February 6, 2026, due to non-compliance with RBI directions on 'Asset Classification', following a statutory inspection as of March 31, 2024. This action is based on deficiencies in regulatory compliance.
**Key Points / Main Content**
* **Monetary Penalty:**
* RBI imposed a monetary penalty of ₹5.30 lakh on IIFL Finance Limited.
* Penalty imposed February 6, 2026, by order of RBI.
* The penalty is imposed under Section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
* **Reason for Penalty:**
* Non-compliance with certain RBI directions issued on 'Asset Classification'.
* The company failed to classify certain accounts as 'non-performing asset' on restructuring.
* Follows statutory inspection with reference to its financial position as on March 31, 2024.
* **Other Considerations:**
* This action is based on deficiencies in regulatory compliance.
* Penalty imposition does not pronounce upon the validity of transactions with customers.
* The penalty is without prejudice to any other action that RBI may initiate against the company.
**Impact Analysis**
* **IIFL Finance Limited**
**Impact:**
* IIFL Finance Limited incurs a monetary penalty of ₹5.30 lakh.
* The company's regulatory compliance record is negatively impacted.
**Action Required:**
* Pay the imposed penalty.
* Review and rectify asset classification practices to ensure compliance with RBI directions.
* **RBI:**
**Impact:**
* RBI is responsible for ensuring compliance with its directives.
**Action Required:**
* May initiate other actions against the company.
* **Customers of IIFL Finance Limited:**
**Impact:**
* The press release states that the penalty imposed is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.
**Action Required:**
* No specific action required based on this release.
Key Entities Referenced
Reserve Bank of India Act, 1934: The act under which RBI derives its authority and powers.
RBI: The regulator imposing the penalty.
IIFL Finance Limited: The entity on which the penalty is imposed.
section 58G(1)(b) read with section 58B(5)(aa): The specific sections of the Reserve Bank of India Act, 1934 under which the penalty was imposed.
Asset Classification: RBI directions related to asset classification for which non-compliance penalty has been imposed.
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