Case Brief
By an order dated August 21, 2024, RBI imposed a monetary penalty of Rs 1,99,50,000 on Innofin Solutions Private Limited (LenDen Club). RBI said the company was found non-compliant with provisions of the NBFC-Peer to Peer Lending Platform Directions, 2017 and the Guidelines on Digital Lending. The supervisory findings included failure to disclose borrower credit assessment and risk profile to prospective lenders, disbursing loans without specific approval from individual lenders, routing amounts through a co-lending escrow account in breach of the prescribed fund transfer mechanism, and routing repayments through a third-party nodal account acting as a Lending Service Provider. RBI stated that the penalty was based on regulatory compliance deficiencies and without prejudice to any other action that may be initiated.
Action Snapshot
- Primary Impact
- Fine: Rs 2.00 Cr
- Entity Type
- NBFC
- Action Type