The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.70 lakh on Fusion Finance Limited for failing to comply with certain provisions of its Know Your Customer (KYC) guidelines.

The penalty was imposed through an order dated August 14, 2026, under the provisions of the Reserve Bank of India Act, 1934. The action followed a statutory inspection of the company conducted with reference to its financial position as of March 31, 2025.

According to the RBI, the company did not have an adequate system for periodically reviewing the risk categorisation of customer accounts at least once every six months, as required under the KYC directions.

The central bank said the penalty was imposed after examining the company’s response to a show-cause notice as well as submissions made during a personal hearing.

RBI clarified that the action relates specifically to regulatory compliance deficiencies and does not question the validity of transactions or agreements entered into by Fusion Finance with its customers. The penalty is also without prejudice to any other regulatory action that may be taken against the company.