**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.10 lakh on Keertana Finserv Limited due to non-compliance with RBI directions on 'Governance' issues. The order was issued on December 2, 2025, following a statutory inspection of the company’s financial position as of March 31, 2024. This penalty is imposed under the powers conferred on RBI as per Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹3.10 lakh on Keertana Finserv Limited.
* The penalty is for non-compliance with RBI directions on 'Governance' issues.
* The penalty was imposed on December 2, 2025.
* **Basis for Penalty:**
* The penalty stems from a statutory inspection conducted with reference to the company's financial position as of March 31, 2024.
* The company failed to take prior written permission from RBI while appointing a director, resulting in a change in management on account of change in more than 30 per cent of its directors, excluding independent directors.
* **Legal Basis:**
* The penalty is imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
* **Other Information:**
* The action is based on deficiencies in regulatory compliance.
* The penalty does not affect the validity of transactions between the company and its customers.
* The penalty is without prejudice to any other action that RBI may initiate against the company.
**Impact Analysis**
**Keertana Finserv Limited**
* **Impact:**
* Financial penalty of ₹3.10 lakh.
* Potential reputational damage due to non-compliance.
* Increased scrutiny from RBI.
* **Action Required:**
* Pay the monetary penalty.
* Review and strengthen governance practices to ensure compliance with RBI directions.
* Obtain prior written permission from RBI for future director appointments resulting in changes in management composition.
**RBI**
* **Impact**
* Protects the integrity and governance of financial institutions.
* Reinforces its role as a regulatory body.
* **Action Required**
* Monitor the financial institution for future compliance.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator imposing the monetary penalty.
Keertana Finserv Limited: The entity on which the monetary penalty is imposed.
Section 58G(1)(b) of the Reserve Bank of India Act, 1934: Legal basis for the penalty imposed by RBI.
Section 58B(5)(aa) of the Reserve Bank of India Act, 1934: Legal basis for the penalty imposed by RBI.
Mumbai: Location of RBI's central office.
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
December 05, 2025
RBI imposes monetary penalty on Keertana Finserv Limited
The Reserve Bank of India (RBI) has, by an order dated December 02, 2025,
imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand only)
on Keertana Finserv Limited (formerly known as Keertana Finserv Private Limited)
(the company) for non-compliance with certain directions issued by RBI on
‘Governance’ issues. This penalty has been imposed in exercise of powers conferred
on RBI under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of
India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to
its financial position as on March 31, 2024. Based on the supervisory findings of non-
compliance with RBI directions and related correspondence in that regard, a notice
was issued to the company advising it to show cause as to why penalty should not be
imposed on it for failure to comply with the said directions.
After considering the company’s reply to the notice and oral submissions made
during the personal hearing, RBI found, inter alia, that the following charge against
the company was sustained, warranting imposition of monetary penalty:
The company had failed to take prior written permission of the RBI while
appointing a director resulting in change in management on account of change in
more than 30 per cent of its directors, excluding independent directors.
This 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
company with its customers. Further, imposition of this monetary penalty is without
prejudice to any other action that may be initiated by RBI against the company.
(Brij Raj)
Press Release: 2025-2026/1649 Chief General Manager