Following a supervisory assessment (ISE 2025) of the bank’s financial status as of March 31, 2025, the RBI determined that Canara Bank failed to submit KYC records for certain customers to the Central KYC Records Registry (CKYCR) within the mandated timeframe.
Additionally, the bank incorrectly classified some accounts as inoperative, even though the last transaction initiated by the customer had occurred less than a year prior in those accounts.
Furthermore, a penalty of ₹3.1 lakh has been imposed on Puran Associates for failing to comply with various provisions of the RBI’s directives regarding ‘asset classification’.
In both instances, the RBI clarified that the penalties stem from regulatory compliance deficiencies and are not meant to challenge the validity of any transactions or agreements made by the entities with their clients.
