RBI imposes monetary penalty on CSB Bank Limited

Case Brief

By an order dated February 06, 2026, RBI imposed a monetary penalty of ₹63.60 lakh on CSB Bank Limited. The penalty followed a statutory inspection (ISE 2025) and subsequent show-cause proceedings, where RBI found that the bank had entered into an arrangement with business correspondents for activities outside the permitted scope and had levied charges in certain savings bank accounts without ensuring customers were informed upfront. RBI said the action was based on deficiencies in statutory and regulatory compliance and without prejudice to any other action that may be initiated.