The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on The City Co-operative Bank, Hassan, Karnataka, for non-compliance with Know Your Customer (KYC) norms.

The penalty, imposed through an order dated July 17, 2026, follows an RBI statutory inspection based on the bank's financial position as of March 31, 2025.

According to the RBI, the bank failed to upload customers' KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline, resulting in a violation of the regulator's KYC guidelines. After reviewing the inspection findings, the bank's response to the show-cause notice, and oral submissions made during the personal hearing, the central bank concluded that the lapse warranted a monetary penalty.

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