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RBI slaps Rs 3.1 lakh fine on IIFL Finance for gold auction surplus payments to borrowers
India
Published on 15 May 2026
RBI fined IIFL Finance for keeping surplus gold-auction money
The Reserve Bank of India has imposed a Rs 3.1 lakh penalty on IIFL Finance after a supervisory inspection found regulatory compliance failures. RBI said IIFL Finance did not pay certain borrowers the surplus proceeds from auctions of pledged gold items, over and above the loan outstanding. Separately, RBI fined Appnit Technologies Rs 5.8 lakh for KYC and prepaid payment instrument violations, including allowing Aadhaar OTP e-KYC based PPI accounts to run beyond one year without required identification. RBI cited these issues as compliance deficiencies.
- RBI fined IIFL Finance Rs 3.1 lakh
- Issue linked to surplus from pledged gold auctions
- Penalty followed a statutory inspection based on March 31, 2025 position
- RBI fined Appnit Technologies Rs 5.8 lakh for KYC and PPI breaches
- Appnit allowed Aadhaar OTP eKYC PPI accounts to continue over a year
- Both penalties were driven by inspection findings, not transaction validity
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times