RBI Slaps ₹1.11 Crore Penalty on J&K Bank, 2 NBFCs and 1 HFC for Compliance Failures
Moneylife Digital Team 08 December 2025
Reserve Bank of India (RBI) has imposed penalties of ₹1.11 crore  on Jammu and Kashmir Bank Ltd (J&K Bank), two non-banking financial companies (NBFCs) and one housing finance company (HFC) for non-compliance with the directions issued by the banking regulator. The highest penalty of ₹99.30 lakh has been imposed on J&K Bank.
 
The NBFCs penalised are New Delhi-based Bansal Credits Ltd and Telangana-based Keertana Finserv Ltd. The HFC penalised Truhome Finance Ltd is from Maharashtra.
 
J&K Bank has been penalised for violating Section 26A of the Banking Regulation Act (BR Act) 1949, and for failing to comply with several RBI directions. These include guidelines under the internal ombudsman scheme 2018, customer service standards for banks, and know-your-customer (KYC) norms.
 
RBI’s statutory inspection found several violations J&K Bank. The lender failed to escalate certain complaints, those that were partly or fully rejected by its internal grievance mechanism, to the Internal Ombudsman for a final decision. It also failed to send final communication letters to customers regarding the resolution of their complaints, thereby denying them information about their right to approach the banking ombudsman if they were not satisfied with the Bank’s response.
 
Further, J&K Bank did not transfer eligible balances from certain accounts to the depositor education and awareness (DEA) fund within the mandated timeframe. Additionally, it lacked face-matching technology in its video-based customer identification process (V-CIP) and did not verify the economic and financial profiles submitted by customers during the V-CIP.
 
Bansal Credits Ltd has been fined ₹6.20 lakh for failing to comply with certain provisions of RBI's KYC directions. The NBFC did not have any system in place to generate alerts for effectively identifying, monitoring and reporting suspicious transactions. It also failed to upload customers' KYC records to the central KYC records registry (CKYC).
 
Similarly, during the inspection of Keertana Finserv Ltd (formerly Keertana Finserv Pvt Ltd), RBI found that the NBFC had failed to obtain prior written approval before appointing a director. This appointment resulted in a change in management, as more than 30% of its directors, excluding independent directors, had changed.
 
As a result, RBI penalised Keertana Finserv ₹3.10 lakh.
 
Truhome Finance (formerly known as Shriram Housing Finance Ltd.), an HFC based in Maharashtra, has been penalised ₹3.10 lakh for non-compliance with certain provisions of the RBI-KYC directions issued by the RBI. The HFC failed to obtain a permanent account number (PAN) or equivalent document thereof or form no60 in certain loan accounts.
 
In all four cases, RBI clarified that the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce on the validity of any transactions or agreements these entities entered into with their customers.
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