**Executive Summary**
This is a press release from the Reserve Bank of India (RBI) announcing a monetary penalty of ₹32.50 lakh imposed on Bank of Maharashtra due to non-compliance with RBI directions on credit information reporting for Self Help Group members and Know Your Customer guidelines. The order was dated February 06, 2026, and the press release is dated February 13, 2026. The penalty was imposed after a Statutory Inspection for Supervisory Evaluation (ISE 2025) with reference to its financial position as on March 31, 2025.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹32.50 lakh on Bank of Maharashtra.
* The order was dated February 06, 2026.
* **Reason for Penalty:**
* Non-compliance with RBI directions on ‘Credit information reporting in respect of Self Help Group members’ and 'Know Your Customer' guidelines.
* **Authority:**
* The penalty was imposed under the provisions of section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005 and section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
* **Inspection and Findings:**
* The Statutory Inspection for Supervisory Evaluation (ISE 2025) was conducted on the bank as of March 31, 2025.
* RBI found that the bank did not report Self Help Group member level data to Credit Information Companies and did not identify Beneficial Owners in certain accounts.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance.
* The penalty is without prejudice to any other action that may be initiated by RBI against the bank.
**Impact Analysis**
**Bank of Maharashtra**
* **Impact:**
* Financial penalty of ₹32.50 lakh.
* Potential reputational damage.
* Increased scrutiny from RBI.
* **Action Required:**
* Pay the monetary penalty.
* Address the identified deficiencies in credit information reporting and KYC compliance to avoid further penalties.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
Bank of Maharashtra: The entity on which the monetary penalty is imposed.
Banking Regulation Act, 1949: Act under which RBI imposed penalty.
Credit Information Companies (Regulation) Act, 2005: Act under which RBI imposed penalty.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 13, 2026
RBI imposes monetary penalty on Bank of Maharashtra
The Reserve Bank of India (RBI) has, by an order dated February 06, 2026,
imposed a monetary penalty of ₹32.50 lakh (Rupees Thirty Two Lakh Fifty Thousand
only) on Bank of Maharashtra (the bank) for non-compliance with certain provisions
of directions issued by RBI on ‘Credit information reporting in respect of Self Help
Group members’ and ‘Know Your Customer’. This penalty has been imposed in
exercise of powers conferred on RBI under the provisions of section 25(1)(iii) read
with section 23(4) of the Credit Information Companies (Regulation) Act, 2005 and
section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act,
1949.
The Statutory Inspection for Supervisory Evaluation (ISE 2025) of the bank was
conducted by RBI with reference to its financial position as on March 31, 2025.
Based on supervisory findings of non-compliance with the provisions of RBI
directions and related correspondence in that regard, a notice was issued to the bank
advising it to show cause as to why penalty should not be imposed on it for failure to
comply with the said provisions of RBI directions.
After considering the bank’s reply to the notice, additional submissions made by it
and oral submissions made during the personal hearing, RBI found that the following
charges against the bank were sustained, warranting imposition of monetary penalty:
i) The bank did not report Self Help Group member level data to Credit
Information Companies; and
ii) The bank did not identify Beneficial Owners in certain accounts.
The action is based on deficiencies in regulatory compliance and is not intended
to pronounce upon the validity of any transaction or agreement entered into by the
bank with its customers. Further, imposition of monetary penalty is without prejudice
to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Press Release: 2025-2026/2114 Chief General Manager