RBI Imposes Penalty on Canara Bank for Non-Compliance with Regulatory Provisions
RBI Imposes Penalties on Canara Bank and Puran Associates Pvt Ltd
The Reserve Bank of India (RBI) has imposed penalties on two entities for non-compliance with certain provisions. Canara Bank has been penalized a total of Rs 41.8 lakh for failing to adhere to Know Your Customer (KYC) norms.
Following a supervisory evaluation (ISE 2025) conducted on March 31, 2025, the RBI found that Canara Bank did not upload KYC records of certain customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline. Furthermore, the bank was found to have incorrectly classified certain accounts as inoperative, despite the last customer-induced transaction being less than one year old in such accounts.
The RBI has also imposed a penalty of Rs 3.1 lakh on Puran Associates Pvt Ltd for non-compliance with certain provisions of the RBI directions on 'asset classification'. In both cases, the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
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| Entity | Penalty (in lakhs) |
|---|---|
| Canara Bank | 41.8 |
| Puran Associates Pvt Ltd | 3.1 |
Investor Takeaway
Investors should be aware of potential regulatory penalties for non-compliance with RBI provisions.
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