meta_id 3254362

On June 19, 2026, the Reserve Bank of India (RBI) announced it had imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand) on Pahal Financial Services Private Limited by order dated June 18, 2026. The penalty was imposed for non-compliance with provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions issued by RBI. The RBI exercised its enforcement powers under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934. A statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Following supervisory findings of non-compliance with RBI directions, RBI issued a show cause notice to the company. After considering the company's reply and oral submissions during a personal hearing, RBI sustained a charge against the company. Specifically, RBI found that the company failed to put in place robust software for effective identification and reporting of suspicious transactions. This deficiency in anti-money laundering and counter-terrorism financing (AML/CTF) compliance formed the basis for the monetary penalty. RBI stated that 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. The imposition of this monetary penalty is without prejudice to any other action that RBI may initiate against the company. REFERENCES: Reserve Bank of India. "RBI imposes monetary penalty on Pahal Financial Services Private Limited." Press Release, June 19, 2026. https://www.rbi.org.in/