The Reserve Bank of India has levied Rs 59.20 lakh in penalties on IndusInd Bank for breaches related to deposit interests and securitisation, while also penalising three NBFCs for separate regulatory shortcomings, spotlighting ongoing enforcement actions in financial regulation.
The Reserve Bank of India has imposed a monetary penalty of Rs 59.20 lakh on IndusInd Bank after finding breaches of rules covering deposit rates and the securitisation of standard assets. According to Business Standard, the central bank said the lender had paid interest on certain current account balances and had also carried out activity that amounted to synthetic securitisation.
The RBI also fined three non-banking finance companies for separate compliance failures. Fusion Finance was penalised Rs 2.7 lakh after the regulator said it had not put in place a system to review the risk categorisation of accounts every six months, as required under the RBI’s know-your-customer framework. Northern Arc Capital was hit with a Rs 6.2 lakh penalty for shortcomings in financial statement disclosures and for gaps in the operation of its internal ombudsman process.
In Northern Arc’s case, the central bank said the company had not reported complete and accurate information on customer complaints in its annual financial statements for 2024-25. It also found that some complaints rejected partly or fully by the firm’s internal grievance system were not automatically escalated to the internal ombudsman. The inspections of Northern Arc, Fusion Finance and IndusInd were carried out with reference to their financial position at the end of March 2025.
The RBI separately fined Muthoot MCred Rs 3.1 lakh for asset classification lapses. It said the company had upgraded some loans from non-performing status to standard without the full repayment of overdue principal and interest across all related credit facilities. The latest actions follow a series of recent RBI penalties against financial firms for compliance shortcomings, including earlier fines reported by Business Standard and other outlets over customer due diligence, risk reviews and transaction monitoring.
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