Overview
- The Reserve Bank of India imposed a monetary penalty of Rs 41.80 lakh on Canara Bank after a statutory supervisory inspection found compliance failures.
- The RBI said the bank failed to upload certain customers' KYC details to the Central KYC Records Registry within prescribed timelines, breaching mandated record-sharing rules.
- Inspectors also found that some accounts were classified as inoperative even though the last customer-initiated transaction had occurred less than one year earlier, contrary to RBI guidance on account treatment.
- Before levying the fine the RBI issued a show-cause notice, reviewed Canara Bank's written and oral submissions at a personal hearing, and concluded the violations were established.
- The penalty was imposed under powers in the Banking Regulation Act and the RBI stressed the action addresses regulatory compliance, not transaction validity, while reserving the right to take further measures.