Document title: RBI imposes monetary penalty on Avail Financial Services Limited
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release: 2026-2027/703
Date: 17 July 2026
Regulatory and Policy Measures
The RBI, by an order dated 10 July 2026, imposed a monetary penalty of ₹6.20 lakh (Rupees Six Lakh Twenty Thousand only) on Avail Financial Services Limited for non‑compliance with RBI directions on governance and credit/investment concentration norms. The penalty is exercised under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
A statutory inspection of the company’s financial position as on 31 March 2025 was conducted. Following the inspection, a notice was issued to Avail Financial Services Ltd requiring it to show cause why a penalty should not be imposed for the identified breaches. After reviewing the company’s written reply and oral submissions made during a personal hearing, the RBI sustained two charges: (i) the Managing Director held directorships in two other NBFCs classified as “Middle Layer”, and (ii) the company breached the regulatory single‑party exposure limit.
The RBI clarified that the penalty is imposed solely for deficiencies in regulatory compliance and does not adjudicate the validity of any transaction or agreement entered into by the company with its customers. The monetary penalty is imposed without prejudice to any further action that the RBI may initiate against Avail Financial Services Limited.
In summary, the RBI has exercised its statutory powers to enforce governance and concentration norms on an NBFC, levying a ₹6.20 lakh penalty while reserving the right to pursue additional regulatory measures if required.