ESAF Small Finance Bank Limited

RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after its supervisory examination (ISE 2022) and related review found non-compliance with RBI’s directions on ‘Customer Service in Banks’. The bank was found to have permitted certain Basic Savings Bank Deposit (BSBD) account holders to open savings bank deposit accounts and did not close certain savings bank deposit accounts within thirty days from the date of opening of BSBD accounts for such customers.

The bank must absorb the monetary penalty and address the compliance gaps identified by RBI in its customer service processes. The order does not invalidate customer transactions, but it signals regulatory scrutiny over BSBD account handling and timely closure of overlapping savings accounts. The affected entity is ESAF Small Finance Bank Limited and, indirectly, its customers whose account operations were involved in the non-compliance.