Canara Bank is a licensed retail bank subject to RBI supervision, and the penalty concerns KYC compliance and account management practices that directly relate to retail banking operations and customer-facing deposit account obligations.
Low confidence — REQUIRES HUMAN REVIEW. This is purely an enforcement action on regulatory compliance procedures; there is no investment, lending, or asset management dimension that would warrant Investment Services tagging.
Specialism
The RBI imposed a monetary penalty on Canara Bank for KYC non-compliance, specifically failures to upload customer KYC records to the Central KYC Records Registry within prescribed timelines.
Mandatory inheritance: KYC is a child of Financial Crime, Anti-Money Laundering/Counter-Terrorism Financing, and Authentication; Financial Crime is selected as the most direct parent reflecting the financial crime prevention purpose of KYC compliance.
2026-06-08 10:56:16·pthandapani@vixio.com
Meta Id
3218275
Content ID
3226757
GUID
2d74e89f81688d17e8654b70ddb63c2f
Press Releases - Reserve Bank of India
Pipeline Progress
🔄 Pipeline Journey
⏱
35s
total
✓
Queued10:55:40
+1s
✓
Metadata10:55:41
+1s
✓
S3 Content10:55:42
+22s
✓
Extracted10:56:04
+6s
✓
LLM Gen10:56:10
+5s
✓
Stored10:56:15
TITLE: India's Reserve Bank Imposes Monetary Penalty on Canara Bank for Know Your Customer Non-Compliance
BODY:
On June 5, 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹41.80 lakh on Canara Bank for non-compliance with RBI directions on Know Your Customer (KYC) and Unclaimed Deposits/Inoperative Accounts in banks. The RBI exercised its enforcement powers under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
The penalty followed a Statutory Inspection for Supervisory Evaluation (ISE 2025) conducted by the RBI with reference to the bank's financial position as of March 31, 2025. Following supervisory findings of non-compliance, the RBI issued a notice to Canara Bank requesting it to show cause why a penalty should not be imposed. After considering the bank's reply, additional submissions, and oral submissions during a personal hearing, the RBI sustained two primary charges: the bank failed to upload KYC records of certain customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline, and the bank incorrectly classified certain accounts as inoperative despite the last customer-induced transaction occurring less than one year prior.
The RBI emphasised that this action addresses 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 penalty is imposed without prejudice to any other enforcement action the RBI may initiate against Canara Bank. This enforcement action underscores the RBI's continued focus on ensuring banks maintain robust KYC procedures and accurate account classification practices in compliance with regulatory requirements.
Press Releases - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Press Releases ( 307 kb ) Date : Jun 05, 2026 Reserve Bank of India imposes monetary penalty on Canara Bank The Reserve Bank of India (RBI) has, by an order dated June 5, 2026, imposed a monetary penalty of ₹41.80 lakh (Rupees Forty one lakh eighty thousand only) on Canara Bank (the bank) for non-compliance with certain provisions of directions issued by RBI on ‘Know Your Customer (KYC)’ and ‘Unclaimed Deposits / Inoperative Accounts in banks’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. The Statutory Inspection for Supervisory Evaluation (ISE 2025) of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with the provisions of RBI directions, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said provisions of RBI directions. After considering the bank’s reply to the notice, additional submission made by it and oral submissions made during the personal hearing, RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty: the bank did not upload KYC records of certain customers onto 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 in such accounts. The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank. (Brij Raj) Chief General Manager Press Release: 2026-2027/398 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December 1990 All Months January February March April May June July August September October November December Top Back to previous page