MUMBAI (India CSR): The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 50,000 on The Kalaburagi and Yadgir District Co-operative Central Bank Limited, Karnataka, for non-compliance with its directions on Know Your Customer (KYC) norms.
The penalty, imposed by an order dated August 19, 2025, was levied under provisions of the Banking Regulation Act, 1949, the RBI said in a release.
The statutory inspection of the bank was conducted by NABARD with reference to its financial position as of March 31, 2024. The inspection and subsequent review revealed that the bank had failed to upload KYC records of customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline.
A show cause notice was issued, and after considering the bank’s reply and oral submissions during the personal hearing, RBI concluded that the charges were sustained, warranting the imposition of the penalty.
The central bank clarified that the action was based on deficiencies in regulatory compliance and does not pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. The imposition of the penalty is also without prejudice to any other action that RBI may take against the bank.
(India CSR)
