India

The Reserve Bank of India imposed a monetary penalty of 10 lakh rupees on Hero Fincorp Limited on September 22, 2026, following supervisory findings of non-compliance with RBI's Fair Practices Code for Lenders regarding interest charging. The violation emerged during a statutory inspection conducted with reference to the company's financial position as of March 31, 2025. Specifically, Hero Fincorp collected excess interest from certain loan accounts, breaching RBI directions on permissible lending practices. The enforcement action followed a show-cause notice and consideration of the company's response and oral submissions during a hearing. RBI exercised its penalty authority under the Reserve Bank of India Act, 1934. The regulator emphasized that this action targets regulatory compliance deficiencies and does not validate or invalidate customer transactions, while reserving the right to pursue additional enforcement measures against the lender.

The Insurance Regulatory and Development Authority of India fined ICICI Lombard General Insurance Co. Ltd. to pay ₹1 crore on September 7, 2026, for vendor management failures, failure to report outsourcing, and improper payments made to competitor agents.

On August 20, 2026, the IRDAI barred Pramerica Life Insurance Limited from opening new branches for six months for exceeding its statutory Expenses of Management (EoM) limits by ₹137.79 crore during FY 2024–25.

On 20th August 2026, the IRDAI prohibited the Edelweiss Life Insurance Company Limited from setting up any new branch for six months due to the over-exceeding of statutory EoM limit by ₹89.95 crore for the financial year 2024-25

On August 19, 2026, IRDAI has imposed a penalty on Niva Bupa Health Insurance Co. Limited from setting up any new branch for six months for crossing the EoM ceiling limit by ₹248.37 crore in FY 2024-25.

On August 19, 2026, the IRDAI prohibited Acko General Insurance Limited from setting up new branches for six months as the company had gone beyond its allowable expenditure on management of ₹334.78 crore.

The Reserve Bank of India imposed a penalty of ₹3.10 lakh on Muthoot MCred Limited on 14th August, 2026 for classifying NPA accounts as standard without repaying their entire outstanding dues.

On 14th August 2026, the Reserve Bank of India fined Fusion Finance Limited with a sum of ₹3.10 lakh for failing to comply with the Fair Practices Code with regard to disclosing loan charges.

Northern Arc Capital Ltd. was penalized by RBI for under-reporting of customer complaints in their financial statements and failure to escalate their complaints automatically to their internal ombudsman. This penalty of 6.20 lakhs was issued on 14th August 2026.

On 19th August 2026, SEBI imposed an interim order of ban on Copthall Mauritius Investment and Mansi Share and Stock Broking on the allegation of market manipulation of Sensex closing auction session of 13th August.

On August 8, 2026, a complaint was made in a Special PMLA Court against Reliance Infrastructure Limited and others for alleged money laundering of ₹187 crore in relation to toll highway projects. For further details regarding the case, you may refer to various legal and press sources.

The Competition Commission of India imposed a total fine of Rs. 2,30,00,000 ($239,765 USD) on 16 licensed dealers of HP on July 13, 2026, for tender manipulation through submission of proxy cover bids for toner cartridges.

The cumulative penalty of ₹1.22 crores was imposed by the Competition Commission of India (CCI) on five particular authorized HP resellers in the Personal Systems Case dealing with the anti-competitive acquisition of PCs and laptops.

On July 13, 2026, the Competition Commission of India (CCI) imposed a penalty of ₹138.85 crores on HP India Sales Pvt Ltd for indulging in the practice of bid rigging.

The Reserve Bank of India penalized Satya MicroCapital Limited with a fine of ₹3.10 lakh on 13th July 2026 for not classifying restructuring accounts of their loans as Non-Performing Assets (NPAs).

On July 10, 2026, the Reserve Bank of India imposed a penalty of INR 5.80 Lakh on Muthoot Finance Limited because of the firm's failure to perform customer risk assessment and not having adequate software for monitoring transactions.

On July 10, 2026, the Reserve Bank of India penalized Avail Financial Services Limited with a fine of ₹6.20 lakh for non-compliance with single-party exposure limits and allowing its Managing Director to assume dual directorships in other NBFCs.

The Reserve Bank of India fined GIC Housing Finance Limited ₹3.10 Lakh for its failure to conduct periodic reviews of the risk categorization of customer loan accounts on a half-yearly basis. This regulatory fine will not affect in any way the legality of financial transactions with borrowers.

The penalty imposed on Arun Panchariya by the Securities and Exchange Board of India (SEBI) was decreased to ₹20 lakh on 28th April 2026 in the case of Winsome Yarns Ltd. GDR after remanding it to the Securities Appellate Tribunal.

On March 30, 2026, the Reserve Bank of India imposed a penalty of ₹31.80 lakh on Airtel Payments Bank Limited for not making mandatory customer complaints disclosures in their financial statements.

The Reserve Bank of India imposed a fine of ₹58.50 lakh on Bank of India on 27 March 2026 for imposing unauthorized charges on priority sector loans and term deposits.

The Reserve Bank of India penalized the Central Bank of India with a fine of ₹63.60 lakh on March 27, 2026, for late upload to the Central KYC Registry and non-compliance with BSBDA requirements.

On 27th March 2026, Union Bank of India was charged ₹95.40 lakh by the Reserve Bank of India for delay in reversing fraud, absence of 24x7 reporting mechanism, and manual intervention in system-driven NPA staging process.

The Reserve Bank of India imposed a penalty of ₹3.10 lakh on Pine Labs Limited on March 23, 2026, because the company had issued full KYC prepaid payment instruments without carrying out the mandatory KYC verification process.

March 20, 2026 saw 126 properties, valued at ₹5,046.91 crore, attached to PACL Limited (Pearls Group) under the Prevention of Money Laundering Act in relation to the huge Ponzi Scheme case.

The Reserve Bank of India imposed a penalty of ₹1 lakh on The Kodagu District Co-operative Central Bank on March 20, 2026, due to violation of the Banking Regulation Act regarding granting loans to the bank’s directors.

On March 20, 2026, the Reserve Bank of India imposed a penalty of ₹31.80 lakh on HSBC India for non-adherence to rules related to tracking and showing of unclaimed deposits.

The ED has placed a freeze on ₹77.86 crore in 13 bank accounts of Reliance Infrastructure Limited on March 12, 2026, pursuant to FEMA in connection with the clampdown on the Reliance Group headed by Anil Ambani.

The ED found that money raised from the public by Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) was diverted to other Reliance Group companies, including Reliance Infrastructure, Reliance Power, Reliance Communications, and Reliance Capital. According to the agency, the funds were routed through a web of shell entities with negligible financial strength and no real operations, all controlled by the Reliance Anil Ambani Group. The ED says this points to dishonest intent by the promoters and key persons, and the assets attached on 11 March 2026 are treated as representing the proceeds of crime.

Manappuram Finance Limited was penalized by the Reserve Bank of India an amount of ₹2.70 lakhs on 9th March 2026 for paying the full amount of variable compensation immediately to two key managerial personnel rather than deferring it.

On March 9, 2026, the Reserve Bank of India levied a penalty of ₹3.10 lakh against Cashfree Payments India Private Limited for debiting amounts from its escrow account in contravention of the Payment Aggregator guidelines.

Penalties related to regulatory enforcement cases of Union Bank of India include several monetary penalties amounting to ₹2,16,08,795 ($228,880 USD) that have been imposed by the Reserve Bank of India (RBI) and the Financial Intelligence Unit (FIU-IND) due to serious violations related to operational practices and consumer protection issues. Important penalties include the imposition of a ₹95.40 lakh penalty in March 2026 because of not providing consumers with 24x7 facilities to raise complaints on fraudulent electronic banking transactions, which resulted in delaying of timely reversal of unauthorised payments and manual overriding of the automatic asset classification system. In addition, the bank was also imposed with a ₹63.60 lakh penalty in May 2025 because of collecting illegal collateral from small farmers for agricultural loans and delaying the transfer of unclaimed money to the Depositor Education and Awareness Fund (DEAF). Besides, there is also a ₹54.00 lakh penalty by FIU-IND in October 2024 for violation of PMLA, and a ₹3.08 lakh penalty in August 2026 for currency and ATM cash management issues.

In April 2024, the Reserve Bank of India (RBI) issued a cease-and-desist order against Kotak Mahindra Bank Limited, restricting the institution from taking on new customers through its online and mobile banking services and from issuing any new credit cards due to technical shortcomings that included regular interruptions in core banking systems and significant shortcomings in security controls in compliance with data leakage prevention and disaster recovery. Having carried out an exhaustive external audit of the IT infrastructure and having taken all necessary measures, the RBI completely rescinded the 10-month-long ban on the business operations of the entity on February 12, 2025.

In March 2024, the Reserve Bank of India (RBI) issued an immediate order to cease IIFL Finance Limited’s operations involving its gold loans portfolio owing to supervisory and operational non-compliance. The operational stoppage was subsequently withdrawn in September 2024.

The regulatory clampdown on Paytm Payments Bank Limited (PPBL) was carried out via some occurrences culminating in the shutdown of all business operations of the firm. The regulatory process began on March 11, 2022, when orders were made under Section 35A of the Banking Regulation Act, and all business operations relating to customer acquisition were prohibited due to consistent issues arising from technology and compliance governance. In the end, failure to comply with the regulatory requirements and AML/KYC policies caused a serious freeze on January 31, 2024, during which the bank could not take any more deposits, top-ups in wallets, or credit transactions.

Section 35A of the Banking Regulation Act, 1949 was used by the RBI in October 2023 to restrict Bank of Baroda from signing up new customers on its digital application called "bob World" as there was a significant deficiency in supervisory material. Internal Audit & Exposé found that in order to achieve tough enrollment targets for corporate within the bank, the employees of the bank were linking customer accounts to third-party mobile numbers. This allowed employees to create false OTPs to manipulate the numbers of app enrollment. However, this loophole gave fraudulent agents an opportunity to steal Rs 22.4 lakh from customer accounts of the bank. In response, the bank conducted an internal cleansing operation where it suspended/terminated the employment of more than 50 employees of the bank and revamped its app structure so that only one mobile number can be linked with each account. The RBI lifted the restriction completely after seven months on May 8, 2024.

The Reserve Bank of India has imposed four regulatory actions upon The Nabapalli Cooperative Bank Limited, West Bengal, under a penalty of about ₹10,60,000 (or about $11,211.94 USD). Using its powers under Section 47A(1)(c), Section 46(4)(i), and Section 56 of the Banking Regulation Act of 1949, the RBI has fined the cooperative bank in different instances since March 2022 till June 2026. Such fines have been imposed due to the existence of very serious compliance problems, including exceeding statutory limits of exposure, non-compliance with the inter-bank and counterparty exposure limits, non-conducting risk assessment and classification of client's accounts in time, and absence of uploading account information of customers into the Central KYC Records Registry (CKYCR). It is important to note that these regulatory actions of the RBI are purely administrative and cannot affect any transactions or accounts of the bank's clients in any way.