Monetary penalty of ₹3 lakh imposed on The Karnal Central Cooperative Bank Limited for non‑compliance with RBI KYC directions.
Deficiencies cited: lack of periodic risk‑category review system and absence of robust software for identification and reporting of suspicious transactions.
RBI action based on statutory inspection by NABARD covering the bank’s financial position as of 31 Mar 2025, followed by notice, show‑cause, and personal hearing.
Penalty imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949; without prejudice to any further RBI action.
