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) guidelines and operational instructions issued under the Supervisory Action Framework (SAF).

The penalty follows an RBI inspection based on the bank's financial position as of March 31, 2025. The central bank found that the bank failed to upload customers' KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline and offered interest rates on certain deposits higher than those offered by the State Bank of India, in violation of SAF directions.

The RBI clarified that the penalty relates to regulatory compliance deficiencies and does not affect the validity of transactions or agreements entered into by the bank with its customers.