RBI imposes monetary penalty on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra

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( 337 kb ) Date : Aug 06, 2026 RBI imposes monetary penalty on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra

The Reserve Bank of India (RBl) has, by an order dated August 03, 2026, imposed a monetary penalty of ₹40,000/- (Rupees Forty Thousand only) on Kedarnath Urban Co-operative Bank Ltd., Latur, Maharashtra (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’ and operational instructions issued under ‘Supervisory Action Framework (SAF)’. 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 Banking Regulation Act, 1949.

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, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were 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; and

offered interest rates on certain deposits higher than those offered by the State Bank of India, in non-adherence to directions issued under Supervisory Action Framework (SAF).

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)

Chief General Manager

Press Release: 2026-2027/826

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