RBI imposes monetary penalty on The City Co-operative Bank, Hassan, Karnataka
Case Brief
By an order dated July 17, 2026, RBI imposed a monetary penalty of Rs 50,000 on The City Co-operative Bank, Hassan, Karnataka. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 56 of the BR Act after RBI’s statutory inspection and show-cause process found non-compliance with RBI’s KYC directions. The sustained violation was the bank’s failure to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline.
RBI imposed a monetary penalty after a statutory inspection and subsequent show-cause proceedings found that The City Co-operative Bank, Hassan, Karnataka had not complied with RBI directions on Know Your Customer (KYC). The sustained charge was that the bank failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timeline, in contravention of RBI directions issued under the BR Act.
Severity Assessment
This is a monetary penalty of Rs 50,000, which falls in the lowest monetary band and there is no broader operational restriction.
The bank must absorb the penalty and continue complying with RBI’s KYC and CKYCR requirements. The action does not, by itself, restrict operations or customer activity, but RBI has stated that the penalty is without prejudice to any other action it may initiate.
Published as The City Co-operative Bank, Hassan, Karnataka
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