Monetary Penalty on The City Co-operative Bank, Hassan, Karnataka · 2026-2027/739
RBI press-release 2026-2027/739 · 23 Jul 2026
Official title
RBI imposes monetary penalty on The City Co-operative Bank, Hassan, Karnataka
RBI press-release 2026-2027/739 · 23 Jul 2026
Official title
RBI imposes monetary penalty on The City Co-operative Bank, Hassan, Karnataka
Summary
Check the official recordThe Reserve Bank of India has imposed a monetary penalty of ₹50,000 on The City Co-operative Bank, Hassan, Karnataka, for failing to comply with regulatory directions regarding 'Know Your Customer' (KYC) norms. Specifically, the bank failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline. This action follows a statutory inspection of the bank's financial position as of March 31, 2025, and a subsequent show-cause notice process. The RBI clarified that this penalty is based on regulatory deficiencies and does not affect the validity of any transactions or agreements between the bank and its customers, nor does it preclude further regulatory actions by the RBI.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
July 23, 2026
RBI imposes monetary penalty on The City Co-operative Bank, Hassan, Karnataka
The Reserve Bank of India (RBI) has, by an order dated July 17, 2026, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The City Co-operative Bank, Hassan, Karnataka (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. 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 BR Act.
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 and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
The bank had failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline.
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: 2026-2027/739 Chief General Manager
ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, कᱶᮤीय कायार्लय, शहीद भगत ᳲसंह मागर्, फोटर्, मुंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502