India, June 22 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 6.20 lakh on Five Star Business Finance Limited for non-compliance with certain provisions of the Know Your Customer (KYC) Directions and Fair Practice Code guidelines.
The penalty was levied through an order dated June 18, 2026, under the powers conferred on the RBI by the Reserve Bank of India Act, 1934.
The action follows a statutory inspection conducted by the central bank with reference to the company's financial position as of March 31, 2025. Based on supervisory findings and subsequent correspondence, RBI issued a show-cause notice to the company seeking an explanation as to why a penalty should not be imposed.
After reviewing the company's writ...