Monetary Penalty on Pahal Financial Services Private Limited
RBI press-release 2026-2027/498 · 19 Jun 2026
Official title
RBI imposes monetary penalty on Pahal Financial Services Private Limited
RBI press-release 2026-2027/498 · 19 Jun 2026
Official title
RBI imposes monetary penalty on Pahal Financial Services Private Limited
Summary
Check the official recordThe Reserve Bank of India imposes a monetary penalty of ₹3.10 lakh on Pahal Financial Services Private Limited. The company failed to implement robust software for the identification and reporting of suspicious transactions. This action follows a statutory inspection of the company financial position as of March 31, 2025. The Reserve Bank of India issued a show cause notice to the company regarding non-compliance with Know Your Customer directions. The company provided a reply and attended a personal hearing. The Reserve Bank of India determined that the charge of non-compliance was sustained. This penalty does not affect the validity of any transaction or agreement between the company and its customers.
Key dates
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Thresholds
If you do not comply
June 19, 2026
RBI imposes monetary penalty on Pahal Financial Services Private Limited
The Reserve Bank of India (RBI) has, by an order dated June 18, 2026, imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand only) on Pahal Financial Services Private Limited (the company) for non-compliance with certain provisions of the 'Reserve Bank of India (Know Your Customer (KYC)) Directions' issued by RBI. This penalty has been imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions.
After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:
The company failed to put in place a robust software for effective identification and reporting of suspicious transactions.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
(Brij Raj)
Press Release: 2026-2027/498 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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