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Paul Merchants Finance drew August's largest disclosed penalty

16th busiestof 140 comparable periods· top 11%

39 RBI action records published between 1 August 2023 and 31 August 2023: 27 fresh actions, 12 extensions of existing orders and 25 monetary-penalty actions with an amount stated, totalling ₹70.3 lakh. That is 39 records against 28 over the same 31 days of July 2023, and ₹70.3 lakh of disclosed penalty value against ₹1.0 lakh.

Period complete. 31 days covered.

Action records
39

28 in July 2023

Disclosed penalties
₹70.3 L

₹1.05 L in July 2023

Severe actions · S4–S5
14

26 · 92.9% previously

Orders in force
46

13 expiring in the next window

When Action Arrived

Published action records across the covered window, split into RegOversight severity bands. Empty intervals remain visible.

RBI action records by publication interval and severity band
IntervalTotalS0–S1 · lifted / lowS2–S3 · moderate / highS4–S5 · major / severe
1 Aug0000
2 Aug0000
3 Aug0000
4 Aug1001
5 Aug0000
6 Aug0000
7 Aug4400
8 Aug0000
9 Aug0000
10 Aug5401
11 Aug1001
12 Aug1001
13 Aug0000
14 Aug4220
15 Aug0000
16 Aug0000
17 Aug6312
18 Aug0000
19 Aug0000
20 Aug0000
21 Aug4220
22 Aug1001
23 Aug1001
24 Aug6411
25 Aug0000
26 Aug0000
27 Aug0000
28 Aug0000
29 Aug2002
30 Aug1001
31 Aug2002

What Stood Out

Each finding is grounded in precomputed metrics. Open it to inspect the supporting numbers and the limits of the claim.

01

Severe orders made up a smaller share of action records

14 records were severe, or 35.9% of actions, down from 26 records and 92.9% in July 2023. No cancellation or supersession was recorded in August.

02

Co-operative banks accounted for the largest share of the penalty increase

Disclosed penalties rose by ₹69.2 lakh to ₹70.3 lakh from ₹1.0 lakh in July 2023. Co-operative bank actions contributed ₹34.8 lakh, or 48.7% of the increase, while payment entity actions contributed ₹30.5 lakh, or 44.0%.

03

Penalty values were less concentrated than in July

The 25 penalty actions had a median value of ₹1.5 lakh, and the five largest accounted for 64.7% of disclosed value. In July 2023, the top five accounted for 100.0% and the median was ₹52,500.

04

Thirteen orders in force were due to expire in September

There were 46 orders in force, with 13 expiring between 1 September 2023 and 30 September 2023. The longest-running records included M/s Haribhakti & Co. LLP, Chartered Accountants, Sahebrao Deshmukh Co-operative Bank Limited and Raigad Sahakari Bank Limited.

What RBI Did and Where It Landed

Amber bars show the current mix. The fine marker shows the comparable earlier period, so a change is visible rather than merely asserted.

Action mix

Primary recorded action category.

  1. Monetary penalty25 · 64.1%

    Previous 2 · 7.1%

  2. Business restriction14 · 35.9%

    Previous 20 · 71.4%

Lifecycle

Fresh actions, extensions and withdrawals.

  1. Fresh action27 · 69.2%

    Previous 9 · 32.1%

  2. Extension12 · 30.8%

    Previous 19 · 67.9%

Entity types

Action records by regulated-entity class, not entities affected.

  1. Co-operative bank37 · 94.9%

    Previous 26 · 92.9%

  2. Bank1 · 2.6%

    Previous 1 · 3.6%

  3. Payment entity1 · 2.6%

Why RBI acted

Overlapping themes; one action may carry several reasons.

  1. Reporting & disclosure16 · 41%
  2. KYC / AML10 · 25.6%

    Previous 1 · 3.6%

  3. Other10 · 25.6%

    Previous 13 · 46.4%

  4. Capital & exposure norms8 · 20.5%

    Previous 7 · 25%

  5. Customer protection8 · 20.5%

    Previous 6 · 21.4%

  6. Governance & oversight8 · 20.5%

    Previous 5 · 17.9%

Defining Actions

Up to four non-duplicative actions selected for monetary impact, breadth, severity or relief. Quiet periods may show fewer.

  2. Directions u/s 35A read with section 56 of the Banking Regulation Act, 1949 – Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru – Extension of Period

    Widest orderS4 High
    4 Aug 2023business restriction

    Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru, Karnataka

    RBI extended the existing Section 35A directions for Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru, Karnataka. The release does not describe new misconduct and says the prior operating restrictions continued unchanged.

    Read case briefRBI source

What It Cost

25 actions had a disclosed amount. Totals and distribution shape are kept separate from action volume.

Median
₹1.5 L

Previous ₹52,500

Largest
₹30.5 L

Previous ₹1 L

Top five
₹45.5 L

Previous ₹1.05 L

95th percentile
₹5 L

Previous ₹1 L

Change by entity type

Arithmetic attribution of the change in disclosed value. Contributions may exceed 100% or run in the opposite direction.

Entity typeCurrentPreviousContribution
Co-operative bank₹34.8 L₹1.05 L48.7%
Payment entity₹30.5 L₹044%
Bank₹5 L₹07.2%

Entity Coverage

Declared
39
Names extracted
39
Canonical links
39
First seen
20

Entity counts are breadth indicators, not action counts. One bulk order can name hundreds of companies.

Orders Still in Force

Orders
46
Entities
46
Expiring next
13
Duplicate entity rows
0

Next expiry window: 1 Sept 2023–30 Sept 2023.