Monetary Penalty on Avail Financial Services Limited · 2026-2027/703
RBI press-release 2026-2027/703 · 17 Jul 2026
Official title
RBI imposes monetary penalty on Avail Financial Services Limited
Summary
Check the official recordWhat changed
The Reserve Bank of India has imposed a monetary penalty of ₹6.20 lakh on Avail Financial Services Limited for non-compliance with regulatory directions regarding governance and credit/investment concentration norms. The penalty follows a statutory inspection of the company's financial position as of March 31, 2025. Investigations confirmed that the company's Managing Director held directorships in two other Middle Layer NBFCs and that the company breached regulatory single-party exposure limits. Following a show-cause notice and personal hearing, the RBI determined the charges were sustained. This action is based on regulatory deficiencies and does not affect the validity of existing customer agreements or preclude further regulatory action.
Key dates
- Date of order imposing penalty
- 10 Jul 2026
Who is affected
- Avail Financial Services Limited
Document text
July 17, 2026
RBI imposes monetary penalty on Avail Financial Services Limited
The Reserve Bank of India (RBI) has, by an order dated July 10, 2026, imposed a monetary penalty of ₹6.20 lakh (Rupees Six Lakh Twenty Thousand only) on Avail Financial Services Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Governance’ and ‘Credit/Investment Concentration Norms’. This penalty has been imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions.
After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found that the following charges against the company were sustained, warranting imposition of monetary penalty:
i. The Managing Director of the company held directorship in two other NBFCs- Middle Layer. ii. The company had breached the regulatory single party exposure limit.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
(Brij Raj)
Press Release: 2026-2027/703 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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Source details
- Source
- Reserve Bank of India
- Type
- press-release
- Published by source
- 17 Jul 2026
- Document number
- 2026-2027/703
- Issuing division
- Department of Communication
- Coverage area
- banking