Document title: RBI imposes monetary penalty on The City Co-operative Bank, Hassan, Karnataka
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/739
Date: July 23, 2026
Banking and Credit
The RBI conducted a statutory inspection of The City Co-operative Bank, Hassan, with reference to its financial position as on March 31, 2025. The inspection identified non‑compliance with RBI directions on Know Your Customer (KYC). Specifically, the bank failed to upload the KYC records of its customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline.
Regulatory and Policy Measures
Pursuant to an order dated July 17, 2026, the RBI imposed a monetary penalty of ₹50,000 (Rupees Fifty Thousand only) on the bank for the aforementioned KYC breach. The penalty was imposed under the powers conferred by section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act. Prior to the penalty, the bank received a notice to show cause, submitted a reply, and participated in a personal hearing. After considering the bank’s response, the RBI sustained the charge and imposed the fine. The penalty is imposed without prejudice to any other action that the RBI may initiate against the bank.
The RBI’s action underscores its commitment to strict enforcement of KYC norms and regulatory compliance among cooperative banks. This enforcement serves as a reminder to all banking entities of the importance of timely KYC data uploads to the CKYCR.