The Reserve Bank of India (RBI) has imposed monetary penalties on three financial institutions for non-compliance with regulatory guidelines, citing violations ranging from unauthorized public deposit acceptance to lapses in Know Your Customer (KYC) norms.
PayMe India Financial Services Private Limited has been fined 2 lakh rupees for breaching specific conditions of its Certificate of Registration (CoR) under Section 45IA(5) of the RBI Act, 1934. According to the RBI, the company accepted public deposits, which is prohibited under the terms of its registration, and failed to obtain prior written approval from the RBI for a change in shareholding exceeding 26 percent of its paid-up equity capital.
A separate order dated May 30, 2025, imposed a ₹2 lakh penalty on Ratanchand Shah Sahakari Bank Limited, Mangalwedha, Maharashtra, for violations related to KYC compliance and supervisory norms under the Supervisory Action Framework (SAF). The RBI’s inspection revealed the bank had offered interest rates on deposits higher than those allowed under SAF guidelines, breached the single borrower exposure limits, and issued multiple Customer Identification Codes (CICs) instead of a Unique Customer Identification Code (UCIC).
Poornawadi Nagarik Sahakari Bank Maryadit, based in Beed, Maharashtra, has been penalized ₹1 lakh for non-compliance with RBI norms concerning the management of advances and KYC procedures. The bank was found to have sanctioned gold loans exceeding the permissible Loan-to-Value (LTV) ratio and failed to upload KYC records of certain customers to the Central KYC Registry within the stipulated timeline.
In all three cases, the RBI clarified that the penalties are based on regulatory deficiencies and do not imply a judgment on the validity of any transactions or agreements with customers.