RBI imposes Rs. 20,000 penalty in two speaking orders over branch-level lapses

RBI has imposed a monetary penalty on the company.

Thu 1 Oct 2026

Penalty per order

Rs. 10,000/- under each order

Total penalty

total Rs. 20,000/-

Number of orders

Two speaking orders, both dated October 01, 2026

Cochin branch lapse

rupee equivalent received in one retail sale transaction via UPI from two accounts, one of a family member of the travelling customer

Tanda branch lapse

customer signature not obtained on Form A2 in one transaction; later rectified

What has happened

The company has received two speaking orders from the Reserve Bank of India (RBI), both dated October 01, 2026, issued under Section 11(3) of the Foreign Exchange Management Act, 1999, imposing a monetary penalty for violation of instructions under the Master Direction on Money Changing Activities and the Master Direction on Liberalised Remittance Scheme. The RBI has imposed a penalty of Rs. 10,000/- on the company under each of the two orders. The total penalty under both orders is Rs. 20,000/-. The company received the orders on 01.10.2026 at 05:26 PM (IST).

What each order relates to

• Cochin Branch: penalty for alleged violation of Condition (iv) of Para 5 under Section V of the Master Direction on Money Changing Activities dated January 1, 2016, for receiving the payment of rupee equivalent amount in one retail sale transaction through UPI transfer from two different accounts, one of which was of a family member of the travelling customer.
• Tanda Branch: penalty for alleged violation of Para 15 read with Annex Form A2 of the Master Direction on Liberalised Remittance Scheme dated January 1, 2016, for not obtaining the signature of the customer on Form A2 in one transaction. The same was subsequently rectified by that branch.

What the company says about the impact

The company states that except the monetary impact to the extent of Rs. 20,000/- (Rs. 10,000/- under each order), it does not foresee any other material impact on its financial or operational or other activities pursuant to these orders.

How a retail investor can read this

• The action is a monetary penalty imposed by the regulator, not a restriction on the company's business activities described in this intimation.
• Both matters described are at branch level and relate to transaction documentation and payment routing in individual transactions.
• The total penalty stated is Rs. 20,000/-, split as Rs. 10,000/- under each order.
• The company itself has quantified the impact at Rs. 20,000/- and said it sees no other material impact.
• The perception such a disclosure can create is that of a small, procedurally linked regulatory penalty at two branches, with the company stating the financial impact is limited to the penalty amount.

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