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The Reserve Bank of India has imposed monetary penalties on five financial entities for failing to comply with regulatory directions. The action covers three credit information companies and two non-banking financial companies.
The RBI fined TransUnion CIBIL Limited, CRIF High Mark Credit Information Services, Equifax Credit Information Services, Sammaan Finserve Limited and Hinduja Leyland Finance. The penalties relate to delays in customer compensation, credit reporting lapses, microfinance loan pricing rules and securitisation requirements.
TransUnion CIBIL received the highest penalty among the five entities. The RBI imposed a fine of Rs. 26,82,800 on the credit information company through an order dated August 31. The regulator found that the company failed to credit compensation to the bank accounts of certain eligible complainants within the prescribed period.
The compensation framework applies when credit information companies delay updating or correcting customers' credit information. The RBI requires eligible customers to receive compensation within the specified timeline when such delays occur.
CRIF High Mark Credit Information Services received a penalty of Rs. 6,89,600. Equifax Credit Information Services was fined Rs. 1,19,400. The RBI issued both orders on August 31.
The regulator found the same compliance lapse at both companies. CRIF High Mark and Equifax failed to credit compensation amounts to certain eligible complainants within the required period.
The RBI imposed a monetary penalty of Rs. 4.20 lakh on Sammaan Finserve Limited. The action relates to the company's failure to follow regulatory requirements for reporting credit information to the Central Repository of Information on Large Credits, or CRILC.
According to the RBI, Sammaan Finserve failed to report credit information relating to one of its borrowers to CRILC. The central repository allows the regulator and lenders to track large credit exposures and stress in borrower accounts.
The RBI identified the lapse during its regulatory review of the company. It later issued a show-cause notice before deciding on the monetary penalty.
Sammaan Finserve submitted its written response and other information during the process. The regulator considered the company's submissions before issuing the final order.
Hinduja Leyland Finance received a penalty of Rs. 6.20 lakh through an RBI order dated September 2. The regulator sustained two charges against the non-banking financial company following its review.
The RBI found that Hinduja Leyland Finance had not put in place a Board-approved policy for pricing microfinance loans. RBI rules require regulated lenders offering microfinance loans to establish a clear policy approved by their boards.
The regulator also found that the company had undertaken activities like ‘synthetic securitization.’ The RBI said this did not comply with its directions governing the securitisation of standard assets.
The September 2 order was the most recent among the five penalty actions covered by the RBI's regulatory notices.
All five cases followed statutory inspections conducted with reference to the financial position of the companies as of March 31, 2025. The RBI examined whether the entities had complied with applicable regulatory directions.
After identifying the lapses, the RBI issued show-cause notices to the companies. It then reviewed their written replies, additional submissions, and statements made during personal hearings.
The central bank imposed the penalties after completing the regulatory process. The action covers specific compliance failures identified during inspection and does not alter the validity of transactions or agreements entered into by the companies with their customers.
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