RBI imposes monetary penalty on Pinnacle Capital Solutions Private Limited, Jharkhand

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 1 lakh on Pinnacle Capital Solutions Private Limited, Jharkhand, after finding non-compliance with RBI directions on Default Loss Guarantee (DLG) in digital lending. RBI stated that the company had obtained a Default Loss Guarantee from a Lending Service Provider that exceeded five per cent of the outstanding loan portfolio. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, following supervisory scrutiny, a show-cause notice, and consideration of the company’s reply and oral submissions.