The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.70 lakh on KLM Axiva Finvest Limited for non-compliance with certain RBI directions relating to auction procedures.

The penalty was imposed through an order dated September 22, 2026, following a statutory inspection of the company based on its financial position as of March 31, 2025.

RBI found that the company had failed to pay certain borrowers the surplus amount generated from the auction of pledged gold articles after adjusting the outstanding loan amount.

The regulator said the penalty followed consideration of the company’s response to the show-cause notice, additional submissions and oral representations made during a personal hearing.

RBI clarified that the action relates to regulatory compliance deficiencies and does not determine the validity of transactions or agreements between the company and its customers. The penalty is also without prejudice to any other action that may be initiated by the central bank.