**Executive Summary**
This press release, dated February 13, 2026, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.80 lakh on Navi Finserv Limited. The penalty is for non-compliance with certain provisions of the RBI’s directions on ‘Recovery Agents’. The decision follows a statutory inspection of Navi Finserv's financial position as on March 31, 2024, and a subsequent show-cause notice.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹3.80 lakh on Navi Finserv Limited.
* The penalty was ordered on February 10, 2026.
* **Reason for Penalty:**
* Non-compliance with certain provisions of RBI directions on ‘Recovery Agents.’
* Violation of section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
* **Inspection and Notice:**
* RBI conducted a statutory inspection of Navi Finserv Limited with reference to its financial position as on March 31, 2024.
* A show-cause notice was issued due to supervisory findings of non-compliance.
* **Specific Violation:**
* Navi Finserv Limited contacted customers for recovery of overdue loans after 7:00 p.m. and before 8:00 a.m.
* The company did not follow the due protocol while sending messages to customers.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance and does not invalidate transactions with customers.
* The penalty does not preclude RBI from initiating other actions against the company.
**Impact Analysis**
**Navi Finserv Limited**
* **Impact:** Financial penalty of ₹3.80 lakh; Reputational damage due to non-compliance.
* **Action Required:** Ensure strict adherence to RBI guidelines on recovery agents to avoid further penalties.
**RBI**
* **Impact:** Enforcement of regulatory compliance and maintenance of financial system integrity.
* **Action Required:** Monitor Navi Finserv Limited for future compliance and take additional action if necessary.
**Customers of Navi Finserv Limited**
* **Impact:** Affected by the company's non-compliant recovery practices; Possible inconvenience.
* **Action Required:** Be aware of rights and protections regarding debt recovery; Report any undue harassment to RBI.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
Navi Finserv Limited: The company on which the monetary penalty was imposed.
Reserve Bank of India Act, 1934: The act under which the penalty was imposed.
Recovery Agents: RBI Directions related to Recovery Agents
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 Navi Finserv Limited
The Reserve Bank of India (RBI) has, by an order dated February 10, 2026,
imposed a monetary penalty of ₹3.80 lakh (Rupees Three Lakh Eighty Thousand
only) on Navi Finserv Limited (the company) for non-compliance with certain
provisions of the directions issued by RBI on ‘Recovery Agents’. 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 directions.
After considering the company’s reply to the notice, oral submissions made during
the personal hearing, RBI found that the following charge against the company was
sustained, warranting imposition of monetary penalty:
The company contacted customers after 7:00 p.m. and before 8:00 a.m. for
recovery of overdue loans and did not follow the due protocol while sending
messages to customers.
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: 2025-2026/2113 Chief General Manager