RBI Imposes Monetary Penalty on Canara Bank Over KYC and Unclaimed Deposit Non-Compliance
The Reserve Bank of India (RBI) has imposed a monetary penalty on Canara Bank following supervisory findings related to its regulatory compliance concerning 'Know Your Customer' (KYC) protocols and the management of unclaimed deposits and inoperative accounts. The penalty was issued by RBI via an order dated June 5, 2026.The penalty amounts to ₹41.80 lakh (Rupees Forty-one Lakh Eighty Thousand only). This action was taken under powers conferred on the RBI as part of its supervisory role regarding banking regulations.
The imposition followed a statutory inspection for Supervisory Evaluation conducted by the RBI, which reviewed the bank's financial position as of March 31, 2025. Based on the supervisory findings indicating non-compliance with RBI directions, a notice was issued to Canara Bank advising it to explain why a monetary penalty should not be imposed.
Upon reviewing the bank's response, additional submissions, and oral hearings, the RBI determined that specific charges against the bank were sustained, warranting the imposition of the fine. The findings highlighted two key areas of non-compliance:
- The bank failed to upload KYC records for certain customers onto the Central KYC Records Registry (CKYCR) within the required timeframe.
- The bank classified certain accounts as inoperative, even when the last customer induced transaction in those accounts was less than one year old.
The RBI stated that this action is strictly based on deficiencies in regulatory compliance and is intended not to determine the validity of any transaction or agreement between the bank and its customers. Furthermore, the imposition of a monetary penalty does not prejudice the right of the RBI to initiate other actions against the bank.
Key details regarding the penalty are summarized below:
| Entity Penalized | Penalty Amount | Date of Order | Primary Violations |
|---|---|---|---|
| Canara Bank | ₹41,80,000 (Rupees Forty-one Lakh Eighty Thousand only) | June 5, 2026 | Non-compliance with KYC and Unclaimed Deposits/Inoperative Accounts directions. |
CANBK Stock Price Movement
Canara Bank's stock rallied today, climbing by 2.46% and settling at ₹135.81 in post-market trading. The equity saw a total volume of 47.14 million shares, finding intraday support between a low of ₹133.04 and a high of ₹136.4.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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