CSB Bank Limited has been penalized by the Reserve Bank of India with a monetary penalty of ₹63.60 lakh for regulatory non-compliance. The penalty relates to violations concerning Business Correspondent arrangements and account maintenance charges, highlighting ongoing regulatory scrutiny in the banking sector.

Penalty Details and Regulatory Action

The RBI imposed the aggregate monetary penalty through a Speaking Order dated February 06, 2026, which CSB Bank received on February 13, 2026. The penalty amount of ₹63.60 lakh (Rupees Sixty Three Lakh Sixty Thousand Only) was levied under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.

Nature of Violations

The monetary penalty stems from the bank's non-compliance with RBI guidelines and directions in two specific areas:

• Business Correspondent (BC) arrangements: Violations related to the bank's BC operations and compliance framework
• Account maintenance charges: Non-adherence to regulatory guidelines concerning the levy of account maintenance charges on customer accounts

These violations indicate gaps in the bank's compliance mechanisms for customer-facing services and third-party arrangements.

Financial Impact and Disclosure

CSB Bank has quantified the financial impact of this regulatory action at ₹63.60 lakh, representing the direct monetary penalty imposed by the RBI. The bank disclosed this information in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulatory Compliance Framework

The penalty underscores the importance of strict adherence to RBI guidelines, particularly in areas affecting customer services and third-party partnerships. Business Correspondent arrangements are crucial for extending banking services to underserved areas, while account maintenance charges directly impact customer relationships and regulatory compliance.

CSB Bank's Company Secretary Sijo Varghese formally communicated this development to both BSE Limited and National Stock Exchange of India Ltd., ensuring transparency with stakeholders and regulatory authorities as mandated under SEBI regulations.

CSB Bank Limited has formally disclosed its participation in an analyst and institutional investor meeting held on February 04, 2026, in compliance with regulatory requirements under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Meeting Details

The bank conducted a virtual one-on-one meeting with Sundaram Mutual Fund as part of its ongoing investor engagement activities. The interaction was structured to provide institutional investors with insights into the bank's operations and performance while maintaining strict compliance protocols.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about meetings with analysts and institutional investors to ensure market transparency.

CSB Bank confirmed that no unpublished price sensitive information (UPSI) was shared during the meeting, adhering to insider trading regulations and maintaining fair disclosure practices. The bank's Company Secretary, Sijo Varghese, formally communicated these details to both BSE Limited and the National Stock Exchange of India.

Investor Engagement Strategy

Such meetings form an integral part of CSB Bank's investor relations strategy, allowing institutional investors to gain better understanding of the bank's business model, strategic initiatives, and market positioning. The virtual format demonstrates the bank's adaptation to modern communication methods while maintaining effective stakeholder engagement.

The formal disclosure to stock exchanges reflects CSB Bank's commitment to transparency and regulatory compliance, ensuring all market participants have access to information about the bank's investor interaction activities.