Recorded RBI impact
Fine: Rs 40,000
Monetary penalty · Fresh imposition
Published by RBI
6 Aug 2026
Case Brief
The Reserve Bank of India penalised Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra by Rs 40,000 after a statutory inspection and subsequent show-cause process. RBI said the bank failed to upload customer KYC records to CKYCR within the prescribed timeline and also offered interest rates on certain deposits higher than those of the State Bank of India, contrary to directions issued under the Supervisory Action Framework (SAF).
Why RBI Acted
RBI imposed a monetary penalty under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949 after supervisory inspection and show-cause proceedings. The bank was found to have failed to upload KYC records of customers to the Central KYC Records Registry within the prescribed timeline and to have offered interest rates on certain deposits higher than those of State Bank of India, in non-adherence to directions issued under the Supervisory Action Framework (SAF).
Operating Impact
The bank must bear the monetary penalty, and the finding may prompt closer supervisory scrutiny. The order does not by itself invalidate customer transactions or agreements, but it signals compliance lapses in KYC reporting and adherence to supervisory directions.
Regulatory Basis
- section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 40,000
- Order Date
- 3 Aug 2026
- Effective From
- 3 Aug 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank