RBI imposes monetary penalty on Bridge Fintech Solutions Private Limited (“Finzy”)

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10 lakh on Bridge Fintech Solutions Private Limited (Finzy) by order dated March 04, 2025. RBI said the company had failed to comply with certain provisions of the NBFC-Peer to Peer Lending Platform Directions, 2017, based on supervisory findings from a September 2023 scrutiny, a show-cause notice, and the company’s written and oral submissions. The sustained violations included disbursing loans to individual borrowers without the specific approval of individual lenders, taking partial credit risk not permitted under the scope of activities for NBFC-P2P companies, shortcomings in service-provider agreements and annual review requirements, and inadequate periodic review of the Fair Practices Code and Grievances Redressal Mechanism. RBI clarified that the penalty was without prejudice to any other action it may initiate.