The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 lakh on The Mysore and Chamarajnagar District Co-operative Central Bank Limited, Karnataka, for violations of provisions under the Banking Regulation Act, 1949, along with non-compliance with Know Your Customer (KYC) norms.

The penalty, issued through an order dated March 20, 2026, follows supervisory findings based on a statutory inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2025.

The RBI found that the bank had breached regulatory provisions by holding shares in a co-operative society in violation of the Act. Additionally, it failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the stipulated timeline.

After issuing a show-cause notice and reviewing the bank’s response along with oral submissions, the central bank concluded that the charges were sustained, warranting the penalty.

The RBI clarified that the action is based on deficiencies in statutory and regulatory compliance and does not affect the validity of transactions undertaken by the bank with its customers. It also stated that the penalty is without prejudice to any further action that may be initiated.