RBI Slaps ₹8.90 Lakh Penalty on Appnit Technologies and IIFL Finance
Moneylife Digital Team 18 May 2026
Reserve Bank of India (RBI) has imposed a total penalty of ₹8.90 lakh on Uttar Pradesh-based Appnit Technologies Pvt Ltd and Maharashtra-based IIFL Finance Ltd for non-compliance with various regulatory directions issued by the banking regulator.
 
Appnit Technologies, a privately held IT and fin-tech company specialising in digital payment solutions, systems integration and mobile application development, was fined ₹5.80 lakh for violating RBI directions on know-your-customer (KYC) norms and prepaid payment instruments (PPI).
 
RBI’s statutory inspection found that Appnit Technologies allowed PPI accounts opened through Aadhaar one-time passcode (OTP)-based e-KYC to remain active for more than one year without completing customer identification, as required under KYC directions. The regulator also observed that the company had failed to establish a system for periodic review of customers’ risk categorisation.
 
IIFL Finance, a non-banking financial company (NBFC), was penalised ₹3.10 lakh for non-compliance with certain provisions of the RBI master direction on NBFC Scale-Based Regulation Directions, 2023.
 
According to RBI, IIFL Finance failed to return the surplus amount realised from the auction of pledged gold articles, over and above the outstanding loan amount, to certain borrowers.
 
RBI says that after considering the companies’ replies and oral submissions made during the personal hearing, it concluded that the violations were substantiated and warranted monetary penalties.
 
In both cases, the regulator clarified that the penalties are based on regulatory compliance deficiencies and are not intended to pronounce on the validity of any transaction or agreement entered into by the companies with their customers.
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