RBI Imposes ₹3.10 Lakh Penalty on IIFL Finance for FY25 Inspection Violation

IIFL Finance Limited has received a penalty order from the Reserve Bank of India (RBI) imposing a monetary penalty of Rs. 3.10 Lakh (Rupees Three Lakh Ten Thousand only). The order was received on May 15, 2026, and the company made the requisite disclosure to the stock exchanges on May 16, 2026, pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Action and Violation Details

The penalty was imposed by the RBI in exercise of powers conferred under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934. The action stems from supervisory findings of a statutory inspection with reference to the company's financial position as on March 31, 2025, covering the Financial Year 2024-25. The key details of the regulatory action are presented below:

Parameter:	Details
Name of Authority:	Reserve Bank of India
Nature of Action:	Imposition of Monetary Penalty
Penalty Amount:	Rs. 3,10,000/- (Rupees Three Lakh Ten Thousand only)
Legal Basis:	Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934
Date of Receipt of Order:	May 15, 2026
Inspection Reference Period:	Financial Year ended March 31, 2025

Nature of the Contravention

According to the disclosure, the violation pertains to the failure to pay the surplus amount realised from the auction of pledged gold articles, over and above the loan outstanding, to certain borrowers. This finding was identified during the RBI's statutory inspection with reference to IIFL Finance's financial position as on March 31, 2025.

Impact on Company Operations

IIFL Finance has stated in its regulatory filing that there is no material impact on the financial, operational, or other activities of the company as a result of this penalty. The disclosure was made by Samrat Sanyal, Company Secretary & Compliance Officer, on behalf of IIFL Finance Limited, from Mumbai.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.94%	-1.18%	-2.86%	-16.71%	+10.76%	+75.47%

IIFL Finance Limited's Finance Committee, at its meeting held on May 15, 2026, approved the terms and conditions for the issuance of Listed, Unsecured, Non-Convertible Perpetual Debentures (NCDs) on a private placement basis. This intimation was made pursuant to Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows an earlier intimation dated May 12, 2026. The disclosure was filed in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Issue Details

The proposed issuance involves up to 200 NCDs, aggregating to a total issue size of up to INR 200 crore, with each NCD carrying a face value of INR 1,00,00,000. The debentures are to be issued in one or multiple tranches and are proposed to be listed on the National Stock Exchange of India Limited. The following table summarises the key parameters of the issue:

Parameter:	Details
Type of Securities:	Listed, Unsecured, Non-Convertible Perpetual Debentures
Type of Issuance:	Private Placement
Total Number of Securities:	Up to 200 NCDs
Size of Issue:	Up to INR 200 crore (up to 200 NCDs of face value of INR 1,00,00,000 each)
Proposed to be Listed:	Yes
Name of Stock Exchange(s):	National Stock Exchange of India Limited
Tenure of the Instrument:	Perpetual
Date of Allotment and Date of Maturity:	As per relevant Key Information Document
Coupon/Interest:	As per relevant Key Information Document
Security:	Not Applicable

Redemption and Default Provisions

Given the perpetual nature of the NCDs, standard redemption terms are not applicable. However, IIFL Finance retains the right to exercise a call option after the expiry of at least 10 years from the deemed date of allotment, subject to prior approval from the Reserve Bank of India. The table below outlines the key provisions related to default and redemption:

Provision:	Details
Additional Interest on Default:	2% p.a. over and above the Coupon Rate for the period from the date of occurrence of the Event of Default until it is cured to the satisfaction of the Debenture Trustee
Redemption of Debentures:	Not applicable; NCDs are perpetual in nature, subject to call option exercisable after at least 10 years from deemed date of allotment with prior RBI approval

In the event of a delay in payment of interest or coupon and/or redemption of principal on due dates, the company is required to pay additional interest at the rate of 2% p.a. over and above the applicable Coupon Rate. This additional interest accrues from the date of occurrence of the Event of Default until the default is cured to the satisfaction of the Debenture Trustee, acting on the instructions of the Debenture Holders.

Regulatory Compliance

The intimation was submitted to both BSE Limited and the National Stock Exchange of India Limited, and has also been uploaded on the company's website at www.iifl.com . The filing was signed by Samrat Sanyal, Company Secretary & Compliance Officer, on May 15, 2026, from Mumbai. A copy of the intimation was also marked to India International Exchange (IFSC) Limited, GIFT City, Gandhinagar, Gujarat.