Tax & Penalty5 Jun 2026, 08:41 pm
RBI Fines Canara Bank ₹41.8 Lakh for KYC, Unclaimed Deposit Violations
AI Summary
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹41.80 lakh on Canara Bank for non-compliance with KYC and unclaimed deposit regulations. The penalty stems from deficiencies identified during the Supervisory Evaluation (ISE 2025) concerning the bank's financial position as of March 31, 2025. Specifically, the bank failed to upload KYC records on time and incorrectly classified certain accounts as inoperative. The RBI clarified that this action is based on regulatory compliance failures and does not affect the validity of the bank's transactions with customers. The bank received the order on June 5, 2026.
Key Highlights
- RBI penalizes Canara Bank ₹41.8 lakh for regulatory non-compliance.
- Violations include delayed KYC uploads and incorrect inoperative account classification.
- Inspection covered the bank's financial position as of March 31, 2025.
- RBI action is for compliance failures, not transaction validity.
- Bank received the penalty order on June 5, 2026.
Price Impact
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