The RBI's Statutory Inspection for Supervisory Evaluation uncovered two distinct compliance failures. First, the bank levied loan-related charges on agriculture priority sector loans under ₹25,000, breaching RBI protections designed specifically for small-ticket agricultural borrowers. Second, the bank failed to report granular, member-level data for Self Help Groups (SHGs) to Credit Information Companies (CICs), submitting aggregate data instead.
Priority sector regulations shield farmers from ancillary charges on loans below ₹25,000. The violation suggests the bank's automated core banking system did not apply these exemptions correctly—a mechanical failure with regulatory consequences.
The data reporting gap reflects a broader shift in RBI supervisory practice. Credit bureaus now demand member-level transparency for SHGs rather than consolidated figures. Banks treating this as optional face formal reprimand.
These findings underscore a growing tension in financial inclusion compliance. The RBI's Statutory Inspection process increasingly scrutinises micro-level operational mechanics: how charges are calculated for individual ₹20,000 loans, how SHG member records flow to credit bureaus, how legacy systems handle exemptions.
The violations were captured through structured supervisory evaluation, not customer complaints, suggesting the RBI has tightened its audit depth on inclusion-focused lending.
