Canara Bank has been fined Rs 0.42 crore by the Reserve Bank of India for violating know-your-customer and unclaimed deposit regulations. The central bank imposed the penalty under section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. Canara Bank received the order on June 5, 2026.
The RBI conducted a statutory inspection of Canara Bank based on its financial position as of March 31, 2025. The supervisory findings pointed to non-compliance with certain provisions of RBI directions on KYC and unclaimed deposits. A show-cause notice was issued to Canara Bank following the inspection.
Two specific violations were sustained. Canara Bank did not upload KYC records of certain customers to the Central KYC Records Registry within the prescribed timelines. Canara Bank also classified certain accounts as inoperative even though the last customer-initiated transaction was less than one year old.
Canara Bank submitted its response to the show-cause notice and made additional submissions and oral representations during a personal hearing. After considering all materials, the RBI concluded that the charges were sustained and warranted the monetary penalty.
The RBI clarified that the penalty is based on regulatory compliance deficiencies and is not intended to question the validity of any transactions or agreements with customers. The penalty is without prejudice to any other action the RBI may initiate.
Canara Bank informed the stock exchanges that the penalty has no material impact on its financial, operational, or other activities. The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.