Case Brief
What Happened
RBI imposed a monetary penalty on The Karnataka Co-operative Bank Limited, Muddebihal, Karnataka by order dated June 23, 2025. The bank was found to have breached prudential inter-bank (gross) and counterparty exposure limits and to have failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection and consideration of the bank’s reply and oral submissions.