The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.70 lakh on Progfin Private Limited for non-compliance with certain provisions of its Know Your Customer (KYC) Directions.

The penalty, imposed through an order dated August 19, 2026, follows a statutory inspection of the company based on its financial position as of March 31, 2025.

RBI found that Progfin had failed to establish a system for periodic review of the risk categorisation of accounts at least once every six months. The central bank said the action relates to regulatory compliance deficiencies and does not question the validity of transactions or agreements entered into by the company with its customers.