The Reserve Bank of India (RBI) has slapped a penalty of Rs 41.8 lakh on Canara Bank for non-compliance with certain provisions, including those related to Know Your Customer (KYC) norms.

Canara Bank did not upload KYC records of certain customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline, RBI’s findings showed after it carried out a supervisory evaluation of the state-owned lender with reference to its financial position as on 31 March 2025.

The bank also classified certain accounts as inoperative, despite the last customer-induced transaction being less than one year old in such accounts.

The RBI imposed a fine of Rs 3.1 lakh on Puran Associates Pvt Ltd for non-compliance with certain provisions of the central bank’s directions on 'asset classification'.

In both cases, the RBI said penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.