Recorded RBI impact
Fine: Rs 2.70 L
Monetary penalty · Fresh imposition
Published by RBI
21 Aug 2026
Case Brief
The Reserve Bank of India imposed a monetary penalty on Progfin Private Limited after a statutory inspection and a subsequent show-cause process. RBI found that the company had not put in place a system for periodic review of the risk categorisation of accounts, with the review frequency required to be at least once in six months, which amounted to non-compliance with the RBI (Know Your Customer (KYC)) Directions. The penalty was imposed under the RBI Act, 1934, and the release clarifies that the action is based on regulatory compliance deficiencies and does not pronounce on the validity of any customer transaction or agreement.
Why RBI Acted
RBI imposed a monetary penalty on Progfin Private Limited under section 58(G)(1)(b) read with section 58(B)(5)(aa) of the RBI Act, 1934, following a statutory inspection and show-cause process. The sustained charge was that the company did not establish a system for periodic review of the risk categorisation of accounts with a periodicity of at least once in six months, in breach of the Reserve Bank of India (Know Your Customer (KYC)) Directions.
Operating Impact
Progfin Private Limited must absorb the monetary penalty and address the KYC compliance gap identified by RBI, specifically ensuring periodic review of account risk categorisation at least every six months. The action does not itself restrict operations, but it signals supervisory scrutiny and leaves RBI free to initiate any further action if warranted.
Regulatory Basis
- section 58(G)(1)(b) read with section 58(B)(5)(aa) of the Reserve Bank of India Act, 1934
- Reserve Bank of India (Know Your Customer (KYC)) Directions
Action Facts
- Primary Impact
- Fine: Rs 2.70 L
- Order Date
- 19 Aug 2026
- Effective From
- 19 Aug 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC