RBI Fines Bank of Maharashtra ₹32.5 Lakh for KYC, SHG Credit Reporting Lapses

Mumbai: Bank of Maharashtra has received a monetary penalty of ₹32.50 lakh from the Reserve Bank of India for non-compliance with directions on Self Help Group credit reporting and Know Your Customer norms. The public sector lender informed stock exchanges on February 13, 2026, about the penalty through a regulatory filing.

The penalty follows the Statutory Inspection for Supervisory Evaluation conducted by RBI with reference to the bank's financial position as on March 31, 2025. The inspection identified non-compliance with certain provisions of RBI directions on credit information reporting in respect of Self Help Group members and specific KYC directions. Based on these findings, RBI imposed a monetary penalty of ₹32.50 lakh.

In the exchange filing, Bank of Maharashtra stated that it has taken necessary preventive actions for further strengthening its internal processes for preventing recurrence of such events. The bank has clarified that the expected financial implications of the penalty are non-material, indicating that the amount will not significantly impact its financial health.

The penalty highlights RBI's continued focus on strict adherence to SHG lending norms and KYC requirements. Banks are expected to maintain rigorous reporting standards, especially in priority sector lending. At ₹32.5 lakh, the penalty is relatively small for a bank of Maharashtra's size. The bank's total income for Q3 FY2026 was over ₹5,000 crore, making this penalty negligible from a financial perspective. The bank has assured stakeholders that internal processes have been strengthened to prevent recurrence.

Bank of Maharashtra is a public sector bank headquartered in Pune. As of December 31, 2025, the bank had total business of over ₹4.5 lakh crore with more than 2,500 branches across India.