Case Brief
In an order dated May 23, 2025, RBI imposed a monetary penalty of ₹40 lakh on Transactree Technologies Private Limited (Lendbox). The action followed a scrutiny in September 2023 and a show-cause process under the RBI Act, 1934. RBI concluded that the company had violated provisions of the Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 by routing disbursed and collected amounts through a co-lending escrow account instead of the prescribed mechanism, not disclosing borrowers’ credit assessment and risk profile to prospective lenders, and disbursing loans without the specific approval of individual lenders.
Action Snapshot
- Primary Impact
- Fine: Rs 40.0 L
- Entity Type
- NBFC
- Action Type
- Monetary penalty