India, Oct. 28 -- The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on Kamuthi Co-operative Urban Bank Ltd., Tamil Nadu, for non-compliance with regulatory directions on Know Your Customer (KYC) norms. The penalty was imposed through an order dated October 22, 2025, under the provisions of Section 47A(1)(c), read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
RBI conducted a statutory inspection of the bank based on its financial position as of March 31, 2024. Following supervisory findings indicating non-compliance with KYC guidelines, the bank was issued a show-cause notice. After reviewing the bank's written response and oral submissions, the central bank found that the institution had faile...