RBI fines Five Star Business Finance INR 620,000 for breach of norms
This story was originally published at 19:01 IST on 19 June 2026
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--RBI fines Five Star Business Finance INR 620,000 for breach of norms
MUMBAI – The Reserve Bank of India imposed a penalty of INR 620,000 on Five Star Business Finance Ltd. for non-compliance with the know-your-customer guidelines and breach of fair practice code, the central bank said in a release Friday.
The RBI said the company did not implement adequate software to properly identify and report suspicious transactions. It also failed to specify in application forms and sanction letters how it categorises risk and why different borrower groups are charged varying interest rates.
For the March quarter, Five Star Business Finance reported a net profit of INR 2.69 billion. Friday, shares of the company closed 0.12% higher at INR 519.45 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Janwee Prajapati
Edited by Deepshikha Bhardwaj
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