India, June 9 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 3 lakh on The Karnal Central Cooperative Bank Limited for non-compliance with regulatory directions related to Know Your Customer (KYC) norms.
The penalty, imposed through an order dated June 3, 2026, follows supervisory findings arising from a statutory inspection conducted by the National Bank for Agriculture and Rural Development with reference to the bank's financial position as of March 31, 2025.
According to RBI, the bank failed to establish a system for periodic review of risk categorisation of customer accounts and did not implement a robust software mechanism for effective identification and reporting of suspicious transactions. After reviewing ...