Noida, June 8 (APAC Media): The Reserve Bank of India (RBI) on Monday imposed a monetary penalty of ₹3 lakh on The Karnal Central Cooperative Bank Limited, Haryana, for non-compliance with certain Know Your Customer (KYC) directions.
The penalty, imposed through an order dated June 3, 2026, was issued under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, the Reserve Bank of India (Reserve Bank of India) said.
According to the Reserve Bank of India, the statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2025.
Based on supervisory findings and subsequent correspondence, the central bank issued a show-cause notice to the lender.
India Posts $7.1 Billion Current Account Surplus in Q4 FY26, RBI Data Shows
After examining the bank’s response, additional submissions, and oral representations made during a personal hearing, the Reserve Bank of India (RBI) concluded that certain lapses had been established.
The central bank observed that the bank had failed to establish a system for the periodic review of the risk categorisation of accounts and had also not deployed robust software to effectively identify and report suspicious transactions.
“The charges were sustained, warranting imposition of a monetary penalty,” the RBI said in its order.
The RBI clarified that the action is based on deficiencies in regulatory compliance and does not constitute a pronouncement on the validity of any transaction or agreement entered into by the bank with its customers.
It further stated that the penalty is without prejudice to any other action that may be initiated against the bank.
The penalty has been imposed on the Karnal Central Cooperative Bank Limited for violations of the Reserve Bank of India’s (RBI) Know Your Customer (KYC) directions.
–ENDS–
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
Also Read:
