The Reserve Bank of India has imposed a monetary penalty of Rs 3.90 lakh on IIFL Samasta Finance Limited for non-compliance with provisions related to Know Your Customer (KYC) norms and fraud risk management guidelines applicable to non-banking financial companies (NBFCs).

The penalty was levied through an order dated June 5, 2026, under the powers vested in the central bank by the Reserve Bank of India Act, 1934.

The action follows a statutory inspection conducted by the RBI with reference to the company's financial position as of March 31, 2025. Based on supervisory findings and subsequent correspondence, the regulator issued a show-cause notice seeking an explanation from the company regarding the identified compliance deficiencies.

After reviewing the company's written response and oral submissions during a personal hearing, the RBI concluded that certain violations had been established.

According to the regulator, the company failed to implement a robust software system for the effective identification and reporting of suspicious transactions. Additionally, it did not disclose accurate details of fraud cases reported during the financial year 2024-25 in the notes to its financial statements.

The RBI clarified that the penalty is based solely on shortcomings in regulatory compliance and should not be construed as a comment on the validity of any transaction or agreement entered into by the company with its customers. The central bank also stated that the monetary penalty is without prejudice to any further supervisory or regulatory action that may be initiated against the company.