Monetary penalty of ₹41.80 lakh imposed on Canara Bank for non‑compliance with RBI directions on Know Your Customer (KYC) and Unclaimed Deposits / Inoperative Accounts.
The penalty is imposed under RBI powers under section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
RBI’s Statutory Inspection for Supervisory Evaluation (ISE 2025) of the bank, covering its financial position as of 31 March 2025, identified non‑compliance.
The bank failed to upload KYC records of certain customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline.
The bank classified certain accounts as inoperative despite the last customer‑induced transaction being less than one year old.
RBI issued a show‑cause notice, considered the bank’s reply, additional submissions, and oral submissions during a personal hearing before imposing the penalty.
RBI clarified that the penalty does not affect the validity of any transaction or agreement with customers and is without prejudice to any further action.
