New Delhi, May 15 -- Reserve Bank of India has imposed a monetary penalty of Rs 3.10 lakh on IIFL Finance Limited for alleged non-compliance with certain provisions of RBI's NBFC regulations, including failure to return excess money realised from auctioned gold pledged by some borrowers.

In a press release issued on Friday, RBI said the penalty was imposed through an order dated May 11, 2026, under provisions of the Reserve Bank of India Act, 1934.

"The company had failed to pay the surplus amount realised from the auction of pledged gold articles, over and above the loan outstanding, to certain borrowers," RBI said in the release.

The central bank said the action relates to non-compliance with provisions of the 'Master Direction- Rese...