**Executive Summary**
This press release, dated February 13, 2026, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹32.50 lakh on Bank of Maharashtra due to non-compliance with certain RBI directions regarding credit information reporting for Self Help Group members and Know Your Customer (KYC) norms. The order was issued on February 06, 2026. The Statutory Inspection for Supervisory Evaluation (ISE 2025) was conducted with reference to the bank's financial position as of March 31, 2025.
**Key Points / Main Content**
* **Monetary Penalty:**
* RBI imposed a monetary penalty of ₹32.50 lakh on Bank of Maharashtra.
* Penalty imposed due to non-compliance with RBI directions.
* RBI order dated February 06, 2026.
* **Non-Compliance Issues:**
* Bank failed to report Self Help Group member level data to Credit Information Companies.
* Bank failed to identify Beneficial Owners in certain accounts.
* **Regulatory Basis:**
* The penalty is based on deficiencies in regulatory compliance.
* It is imposed under 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 Notice:**
* Statutory Inspection for Supervisory Evaluation (ISE 2025) of the bank was conducted with reference to its financial position as on March 31, 2025.
* RBI issued a notice to the bank advising it to show cause as to why penalty should not be imposed.
* RBI found the charges against the bank were sustained after considering the bank’s reply.
* **Disclaimer:**
* The action is not intended to pronounce on the validity of any transaction or agreement entered into by the bank with its customers.
* 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 loss due to the monetary penalty; reputational risk due to non-compliance with regulatory directives.
* **Action Required:** Improve compliance processes for reporting credit information and identifying beneficial owners; address deficiencies identified by RBI; ensure adherence to RBI's directives to avoid further penalties.
**RBI**
* **Impact:** Demonstrates RBI's commitment to enforcing regulatory compliance and maintaining the integrity of the banking system.
* **Action Required:** Monitor Bank of Maharashtra's compliance with corrective actions; potentially initiate further actions if non-compliance persists.
**Customers of Bank of Maharashtra**
* **Impact:** The press release clarifies that the penalty imposed on the bank does not affect their transactions.
* **Action Required:** No direct action required.
**Credit Information Companies**
* **Impact:** Demonstrates that RBI is serious about credit information companies getting the data they are meant to.
* **Action Required:** No direct action required.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty and conducting the inspection.
Bank of Maharashtra: The bank on which the monetary penalty is imposed for non-compliance.
Credit Information Companies (Regulation) Act, 2005: Law under which RBI's powers are conferred regarding Credit information reporting.
Banking Regulation Act, 1949: Law under which RBI's powers are conferred.
Statutory Inspection for Supervisory Evaluation (ISE 2025): Inspection conducted by RBI which found non-compliance.
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