RBI Imposed Monetary Penalties on Three Banks & Two NBFCs for Non-ComplianceIn February 2026, the Reserve Bank of India (RBI) imposed monetary penalties worth Rs 1.35 crore on 5 Financial Institutions (FIs)which include 3 banks: CSB Bank Limited, Bank of Maharashtra (BOM), and DCB Bank Limited, along with two Non–Banking Finance Companies (NBFCs), IIFL Finance Limited (formerly known as IIFL Holdings Limited) and Navi Finserv Limited.
Key Details:
Highest Penalty: Rs 63.60 lakh has been imposed on CSB Bank for non-compliance with directions issued by RBI on ‘Scope of activities to be undertaken of Business Correspondents (BCs)’ and ‘Customer Service in Banks’.
Key Details:
Highest Penalty: Rs 63.60 lakh has been imposed on CSB Bank for non-compliance with directions issued by RBI on ‘Scope of activities to be undertaken of Business Correspondents (BCs)’ and ‘Customer Service in Banks’.
- While, Rs 29.60 lakh has been imposed on DCB Bank due to its failure to maintain the required Loan-To-Value (LTV) ratio in certain gold loan accounts.
Penalty on PSB: BoM was penalized Rs 32.50 lakh for non-compliance with provisions of directions issued by RBI on credit information reporting in respect of Self-Help Group (SHG) members and Know Your Customer (KYC) rules.
Penalties on NBFCs: IIFL Finance was penalized for non-compliance with certain directions issued by RBI on “asset classification” (Rs 5.30 lakh) and Navi Finserv Limited for non-compliance on ‘Recovery Agents’ ( Rs 3.80 lakh).
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