Recorded RBI impact
Fine: Rs 40,000
Monetary penalty · Fresh imposition
Published by RBI
16 Feb 2026
Case Brief
By an order dated February 13, 2026, RBI imposed a monetary penalty of Rs 40,000 on Matoshri Mahila Sahakari Bank Limited, Parner, Maharashtra. The penalty was levied under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following supervisory findings of non-compliance with RBI directions on Know Your Customer (KYC). RBI held that the bank had failed to put in place a system for periodic review of the risk categorisation of accounts at least once in six months.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after supervisory findings showed non-compliance with RBI’s KYC directions. The sustained charge was that the bank had not put in place a system for periodic review of the risk categorisation of accounts with the required six-monthly periodicity.
Operating Impact
The bank must pay the monetary penalty, and the finding signals a compliance lapse in its KYC monitoring controls. The order does not itself impose a business restriction, but RBI notes that further action may be initiated separately if warranted.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 40,000
- Order Date
- 13 Feb 2026
- Effective From
- 13 Feb 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank