RBI · Enforcement
RBI imposes ₹50,000 penalty on City Co-operative Bank for KYC lapses
The bank failed to upload customer KYC records to the central registry within the prescribed timeline.
What changed
- RBI imposed ₹50,000 penalty on The City Co-operative Bank, Hassan, Karnataka
- Penalty for non-compliance with KYC directions, specifically failing to upload records to CKYCR on time
The read
The RBI has fined The City Co-operative Bank ₹50,000 for failing to upload customer KYC records to the Central KYC Records Registry on time. The penalty, ordered on July 17, 2026, follows a statutory inspection that found the bank in breach of KYC norms. The fine is modest. Yet the RBI's action signals its insistence on strict compliance with anti-money laundering safeguards. Co-operative banks, already under regulatory scrutiny for governance issues, cannot afford slack in basic know-your-customer procedures. The message is clear: even small delays in KYC record-keeping invite punishment.
Key numbers
- Penalty amount: ₹50,000
- Inspection date: March 31, 2025
- Penalty order date: July 17, 2026
Primary source: rbi.org.in