**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.10 lakh on Keertana Finserv Limited for non-compliance with certain RBI directions on 'Governance' issues. The order was issued on December 2, 2025, following a statutory inspection as of March 31, 2024. This action is based on deficiencies in regulatory compliance.
**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 certain RBI directions on 'Governance' issues.
* The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
* **Inspection and Findings:**
* RBI conducted a statutory inspection of Keertana Finserv Limited with reference to its financial position as of March 31, 2024.
* The inspection revealed non-compliance with RBI directions.
* The company was issued a notice to show cause as to why a penalty should not be imposed.
* **Reason for Penalty:**
* Keertana Finserv Limited failed to take prior written permission from 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.
* **Clarifications:**
* 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 company with its customers.
* The monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
**Impact Analysis**
**Keertana Finserv Limited**
* **Impact:** Financial penalty of ₹3.10 lakh; potential reputational damage; possible further scrutiny from RBI.
* **Action Required:** Ensure strict compliance with RBI directions in the future to avoid further penalties and potential regulatory actions; review governance practices and internal controls related to director appointments.
**RBI**
* **Impact:** Reinforcement of regulatory compliance within the financial sector.
* **Action Required:** Continue monitoring Keertana Finserv Limited's adherence to regulations and potentially initiate further actions if needed.
**Customers of Keertana Finserv Limited**
* **Impact:** The notice states that the action is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.
* **Action Required:** No immediate action is required.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
Keertana Finserv Limited: The entity on which the monetary penalty was imposed.
Reserve Bank of India Act, 1934: The law under which the penalty was imposed.
Section 58G(1)(b): Section of Reserve Bank of India Act, 1934 under which penalty was imposed.
Section 58B(5)(aa): Section of Reserve Bank of India Act, 1934 under which penalty was imposed.
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