The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 40,000 on Matoshri Mahila Sahakari Bank Limited, Parner, Maharashtra, for non-compliance with its Know Your Customer (KYC) directions.
The penalty was levied through an order dated February 13, 2026, under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
RBI’s action follows a statutory inspection of the bank conducted with reference to its financial position as on March 31, 2025. Based on supervisory findings and subsequent correspondence, the central bank issued a show-cause notice to the bank. After reviewing the bank’s written response and oral submissions during a personal hearing, RBI concluded that the charge was sustained.
The bank was found to have failed in putting in place a system for periodic review of risk categorisation of accounts at least once every six months, as required under KYC norms.
RBI clarified that the penalty relates to regulatory deficiencies and does not affect the validity of customer transactions.