**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹32.50 lakh on the Bank of Maharashtra on February 06, 2026. The penalty is for non-compliance with RBI's directions on 'Credit information reporting in respect of Self Help Group members' and 'Know Your Customer'. This decision follows the Statutory Inspection for Supervisory Evaluation (ISE 2025) conducted with reference to the bank's financial position as of March 31, 2025.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹32.50 lakh on Bank of Maharashtra.
* The penalty was ordered on February 06, 2026.
* The penalty is for non-compliance with RBI directions on credit information reporting for Self Help Group members and Know Your Customer (KYC) guidelines.
* **Regulatory Basis:**
* The penalty is imposed under the provisions of specific sections of the Credit Information Companies (Regulation) Act, 2005 and the Banking Regulation Act, 1949.
* **Supervisory Findings:**
* 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 a penalty should not be imposed.
* Following the bank's response, RBI sustained charges against the bank.
* **Specific Violations:**
* The bank did not report Self Help Group member level data to Credit Information Companies.
* The bank did not identify Beneficial Owners in certain accounts.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance.
* The action is not intended to pronounce upon 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 RBI may initiate against the bank.
**Impact Analysis**
**Bank of Maharashtra**
* **Impact:** Financial penalty of ₹32.50 lakh and potential reputational damage due to non-compliance. The bank may also face further action from the RBI.
* **Action Required:** Review and strengthen compliance procedures for credit information reporting and KYC guidelines. Remediate the specific violations identified by the RBI (reporting Self Help Group member data and identifying Beneficial Owners).
**RBI**
* **Impact:** Reinforces its regulatory authority and commitment to enforcing compliance with banking regulations.
* **Action Required:** Monitor Bank of Maharashtra's progress in addressing the identified deficiencies and ensure adherence to regulatory requirements.
Key Entities Referenced
Reserve Bank of India (RBI): Imposed a monetary penalty for non-compliance.
Bank of Maharashtra: Bank on which monetary penalty was imposed.
Credit Information Companies (Regulation) Act, 2005: Act under which penalty was imposed.
Banking Regulation Act, 1949: Act referenced in the imposition of the 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