The Reserve Bank of India (RBI) has imposed monetary penalties on Innofin Solutions Private Limited (“LenDen Club”) and NDX P2P Private Limited (“LiquiLoans”) for non-compliance with the Non-Banking Financial Company – Peer to Peer Lending Platform Directions, 2017 and the RBI Guidelines on Digital Lending.

LenDen Club has been fined ₹1.995 crore for regulatory lapses, including:

Non-disclosure of required borrower information such as credit assessment and risk profiles to prospective lenders.

Disbursing loans without specific approval from individual lenders.

The Reserve Bank of India (RBI) has cancelled the Certificate of Registration (CoR) of M/s Margdarshak Financial Services Limited, a Non-Banking Financial Company (NBFC) headquartered at 118, Dayal Farms, Ganeshpur-Rehmanpur, Chinhat-Deva Road, Lucknow, Uttar Pradesh. The CoR (No. B-12.00364) was originally issued on March 22, 2011.

Following the cancellation, the company is no longer authorised to transact the business of an NBFC as defined under Section 45-I of the RBI Act, 1934.

Reasons for Cancellation

The Reserve Bank of India (RBI) has extended the validity of directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS) for Thodupuzha Urban Co-operative Bank Ltd, Kerala. The original directions were issued on August 23, 2022, for six months and were last extended until August 23, 2024.

In the public interest, RBI has further extended the operation of the directive for three months, from August 23, 2024, to November 23, 2024, subject to review. All other terms and conditions of the directive, as previously modified, remain unchanged.

The Reserve Bank of India (RBI) has imposed monetary penalties on several co-operative banks across India for non-compliance with various regulatory directions and statutory provisions under the Banking Regulation Act, 1949. These penalties are based on supervisory inspections conducted with reference to the banks’ financial positions as on March 31, 2023, and are aimed at ensuring adherence to regulatory norms.

Key Penalties Imposed

The Reserve Bank of India (RBI) has extended the validity of directions issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS) for HCBL Co-operative Bank Ltd., Lucknow. The original directions were issued on February 23, 2023, and have been extended multiple times, most recently until August 24, 2024.