The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 40,000 on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra, for non-compliance with its Know Your Customer (KYC) directions and operational instructions issued under the Supervisory Action Framework (SAF).
The penalty was imposed through an order dated August 3, 2026, under the provisions of the Banking Regulation Act, 1949.
The action follows RBI’s statutory inspection of the bank with reference to its financial position as on March 31, 2025. Based on supervisory findings, the central bank issued a show-cause notice to the bank. After examining its written response, additional submissions and oral representations during a personal hearing, RBI concluded that the violations warranted monetary penalty.
According to RBI, the bank failed to upload customers’ KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
It also offered interest rates on certain deposits higher than those permitted under the operational restrictions imposed through the Supervisory Action Framework (SAF).
