Regulatory and Policy Measures
The Reserve Bank of India, by an order dated 14 August 2026, levied a monetary penalty of ₹2.70 lakh (Rupees Two Lakh Seventy Thousand only) on Fusion Finance Limited for non‑compliance with the RBI’s Know Your Customer (KYC) Directions. The penalty is imposed under the powers conferred by Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
RBI’s statutory inspection of Fusion Finance Limited was conducted with reference to the company’s financial position as on 31 March 2025. The supervisory findings identified a breach of the KYC Directions, specifically the company’s failure to establish a system for periodic review of the risk categorisation of accounts, a review that must be performed at least once every six months.
Following the inspection, RBI issued a notice to the company requiring it to show cause why a penalty should not be imposed. After considering the company’s written reply and oral submissions made during a personal hearing, RBI sustained the charge and imposed the monetary penalty.
The RBI clarified that the penalty is imposed solely for regulatory non‑compliance and does not comment on the validity of any transaction or agreement entered into by the company with its customers. The penalty is imposed without prejudice to any other action that the RBI may initiate against Fusion Finance Limited.
The order was signed by the Chief General Manager, Brij Raj, and released as Press Release 2026-2027/898.