The Reserve Bank of India has imposed a monetary penalty of ₹2,49,658 on Canara Bank for delayed reporting by its currency chest. The penalty was levied due to a violation of reporting norms, with the bank receiving the order on June 6, 2026. The financial impact of this action is limited to the penalty amount itself.

Details of the Regulatory Action

The central bank identified the specific contravention as a delay in reporting by the currency chest. The penalty amount of ₹2,49,658 represents the sole quantifiable monetary impact on the bank's operations resulting from this regulatory order.

Regulatory Compliance

The intimation was submitted to the stock exchanges in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure was also made in compliance with Para A of Part A of Schedule III of the said regulations and SEBI Circular No. SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023.

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹41.80 lakh on Canara Bank for non-compliance with specific directions concerning Know Your Customer (KYC) norms and Unclaimed Deposits. The penalty, enforced under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949, follows the Statutory Inspection for Supervisory Evaluation (ISE 2025) conducted with reference to the bank's financial position as on March 31, 2025. Canara Bank received the order on June 05, 2026, and disclosed that the action will have no impact on its financial, operational, or other activities.

The regulatory action stems from supervisory findings that identified lapses in the bank's compliance mechanisms. After considering the bank's reply to a show-cause notice, additional submissions, and oral submissions during a personal hearing, the RBI sustained specific charges. The central bank clarified that the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

The inspection revealed two primary violations. The bank failed to upload KYC records of certain customers onto the Central KYC Records Registry (CKYCR) within the prescribed timeline. Additionally, the bank classified certain accounts as inoperative despite the last customer-induced transaction in those accounts being less than one year old.

The following table details the regulatory action:

The RBI noted that the imposition of the monetary penalty is without prejudice to any other action that may be initiated against the bank. The disclosure was submitted to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.