RBI penalizes gold-loan fintech KLM Axiva Finvest Limited for auction surplus non-payment
Published 26 Sep 2026 · source date 24 Sep 2026
The Reserve Bank of India imposed a monetary penalty of ₹2.70 lakh on KLM Axiva Finvest Limited for regulatory non-compliance discovered during statutory inspection. The company failed to remit surplus amounts to borrowers after auctioning pledged gold articles, where proceeds exceeded outstanding loan balances.
RBI issued the penalty under Section 58-G(1)(b) of the RBI Act 1934 following a show-cause notice and consideration of the company's response and oral submissions. The action targets deficiencies in regulatory compliance regarding auction procedures and does not prejudge transaction validity or preclude further enforcement action.
Why it matters
This enforcement action demonstrates RBI's active supervisory oversight of non-bank financial institutions managing secured lending through auction procedures. Compliance officers in gold-loan and secured lending businesses must ensure auction proceeds are properly allocated to borrowers and that RBI directional compliance is embedded in operational procedures. The case highlights enforcement risk for companies failing to remit surplus funds to customers in a timely manner.