The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 63.60 lakh on CSB Bank Limited for non-compliance with RBI directions related to the scope of activities of Business Correspondents (BCs) and customer service norms.

The penalty, imposed through an order dated February 6, 2026, follows RBI’s Statutory Inspection for Supervisory Evaluation conducted with reference to the bank’s financial position as of March 31, 2025.

RBI found that the bank had entered into arrangements with Business Correspondents for activities beyond the permitted scope and had levied charges in certain savings accounts without adequately informing customers in advance.

The central bank clarified that the penalty was imposed due to regulatory compliance deficiencies and does not affect the validity of any customer transactions. It also noted that the action is without prejudice to any further regulatory measures that may be taken.