Monetary Penalty on Kedarnath Urban Co-operative Bank Ltd.
RBI press-release 2026-2027/826 · 06 Aug 2026
Official title
RBI imposes monetary penalty on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra
RBI press-release 2026-2027/826 · 06 Aug 2026
Official title
RBI imposes monetary penalty on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra
Summary
Check the official recordThe Reserve Bank of India has imposed a monetary penalty of ₹40,000 on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra, for failing to comply with regulatory directions. The penalty follows a statutory inspection of the bank's financial position as of March 31, 2025. The bank was found to have failed to upload customer KYC records to the Central KYC Records Registry within the prescribed timelines and offered interest rates on certain deposits exceeding those offered by the State Bank of India, violating Supervisory Action Framework instructions. The bank was provided an opportunity to show cause and present submissions before the final order was issued.
Key dates
Who is affected
If you do not comply
August 6, 2026
RBI imposes monetary penalty on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra
The Reserve Bank of India (RBl) has, by an order dated August 03, 2026, imposed a monetary penalty of ₹40,000/- (Rupees Forty Thousand only) on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’ and operational instructions issued under ‘Supervisory Action Framework (SAF)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had: i. failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline; and ii. offered interest rates on certain deposits higher than those offered by the State Bank of India, in non-adherence to directions issued under Supervisory Action Framework (SAF).
This action 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj) Press Release: 2026-2027/826 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय įरज़वर् बैंक
RESERVE BANK OF INDIA
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