Monetary Penalty on KLM Axiva Finvest Limited
RBI press-release 2026-2027/1181 · 24 Sept 2026
Official title
RBI imposes monetary penalty on KLM Axiva Finvest Limited
Summary
Check the official recordWhat changed
The Reserve Bank of India imposes a monetary penalty of ₹2.70 lakh on KLM Axiva Finvest Limited. The company failed to comply with RBI directions regarding auction procedures. Specifically, the company did not pay the surplus amount from the auction of pledged gold articles to certain borrowers. The RBI conducted a statutory inspection of the company based on its financial position as of March 31, 2025. The RBI issued a show cause notice to the company before it imposed the penalty. This action addresses regulatory compliance deficiencies. It does not affect the validity of any transaction or agreement between the company and its customers.
Key dates
- Date of order
- 22 Sept 2026
Who is affected
- KLM Axiva Finvest Limited
Thresholds
Document text
September 24, 2026
RBI imposes monetary penalty on KLM Axiva Finvest Limited
The Reserve Bank of India (RBI) has, by an order dated September 22, 2026, imposed a monetary penalty of ₹2.70 lakh (Rupees Two lakh seventy thousand only) on KLM Axiva Finvest Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Auction’ procedure. This penalty has been imposed in exercise of powers conferred on RBI under Section 58-G(1)(b) read with Section 58-B(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 its failure to comply with the said directions.
After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:
The company had failed to pay the surplus amount realised from the auction of pledged gold articles, over and above the loan outstanding, to certain borrowers.
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: 2026-2027/1181 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
- 24 Sept 2026
- Document number
- 2026-2027/1181
- Issuing division
- Department of Communication
- Coverage area
- banking