RBI imposes monetary penalty on Central Bank of India

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹63.60 lakh on Central Bank of India by order dated March 23, 2026. The action was taken under the Banking Regulation Act, 1949 after RBI’s Statutory Inspection for Supervisory Evaluation (ISE 2025) found non-compliance with certain RBI directions on Know Your Customer (KYC) and Financial Inclusion - Access to Banking Services - Basic Savings Bank Deposit Account (BSBDA). RBI stated that the bank failed to upload some customers’ KYC records to the Central KYC Records Registry within the prescribed timeline and also opened additional BSBD accounts for customers who already had BSBD accounts with the bank. RBI noted that the penalty is based on statutory compliance deficiencies and does not pronounce on the validity of any transaction or agreement.