Document title: RBI imposes monetary penalty on Progfin Private Limited
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/944
Date: 21 August 2026
Regulatory and Policy Measures
The Reserve Bank of India, by an order dated 19 August 2026, imposed a monetary penalty of ₹2.70 lakh (Rupees Two lakh seventy thousand only) on Progfin Private Limited for non‑compliance with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions. The penalty is exercised under the powers conferred by section 58(G)(1)(b) read with section 58(B)(5)(aa) of the Reserve Bank of India Act, 1934.
A statutory inspection of the company was conducted with reference to its financial position as on 31 March 2025. Following supervisory findings of non‑compliance and related correspondence, RBI issued a notice to the company asking it to show cause why the penalty should not be imposed. After considering the company’s written reply and oral submissions made during a personal hearing, RBI sustained the charge that the company failed to establish a system for periodic review of risk categorisation of accounts, with the required periodicity of at least once in six months.
The RBI clarified that the action is based solely on deficiencies in regulatory compliance and is not intended to pass judgment on the validity of any transaction or agreement entered into by the company with its customers. The monetary penalty is imposed without prejudice to any other action that RBI may initiate against the company in the future.
The press release concluding the order is signed by the Chief General Manager, Brij Raj.
This regulatory action underscores RBI’s enforcement of KYC compliance standards and its willingness to levy monetary penalties for breaches.