RBI imposes monetary penalty on Pinnacle Capital Solutions Private Limited, Jharkhand

**Executive Summary** This press release, dated January 08, 2026, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on Pinnacle Capital Solutions Private Limited, Jharkhand, for non-compliance with directions related to ‘Default Loss Guarantee (DLG) in Digital Lending’. The penalty was imposed following scrutiny of the company's digital lending operations and a subsequent show cause notice. The order was dated December 9, 2025. **Key Points / Main Content** * **Penalty Imposition:** * RBI imposed a monetary penalty of ₹1 lakh on Pinnacle Capital Solutions Private Limited, Jharkhand. * The penalty is for non-compliance with certain RBI directions on ‘Default Loss Guarantee (DLG) in Digital Lending’. * The order was dated December 9, 2025. * **Legal Basis:** * The penalty is imposed under the provisions of Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934. * **Reasons for Penalty:** * RBI's scrutiny revealed non-compliance with RBI directions. * The company was issued a notice to show cause why the penalty should not be imposed. * The charge against the company was sustained, warranting the penalty. * The company obtained a Default Loss Guarantee from a Lending Service Provider, which exceeded five per cent of the amount of outstanding loan portfolio. * **Disclaimer:** * The action is based on deficiencies in regulatory compliance. * It does not pronounce upon the validity of any transaction or agreement entered into by the company with its customers. * The penalty is without prejudice to any other action that may be initiated by RBI against the company. **Impact Analysis** **Pinnacle Capital Solutions Private Limited, Jharkhand** * **Impact:** Financial penalty of ₹1 lakh. * **Action Required:** Needs to address the non-compliance issues related to ‘Default Loss Guarantee (DLG) in Digital Lending’ and pay the penalty. **Lending Service Provider** * **Impact:** If related to the DLG that exceeded 5% of the outstanding portfolio, they might be impacted as Pinnacle Capital Solutions addresses the violation. * **Action Required:** None mentioned in the document. **Customers of Pinnacle Capital Solutions Private Limited** * **Impact:** The action is not intended to affect the validity of any transactions or agreements between the company and its customers. * **Action Required:** No action is specifically required. **Reserve Bank of India (RBI)** * **Impact:** The actions taken may act as a deterrent to other entities that might be non-compliant. * **Action Required:** None mentioned in the document.

Key Entities Referenced