Mumbai | The Reserve Bank on Friday said it has imposed a penalty of Rs 41.8 lakh on Canara Bank for non-compliance with certain provisions, including those related to Know Your Customer norms.

After a supervisory evaluation (ISE 2025) of the bank with reference to its financial position as on March 31, 2025, the RBI found that Canara Bank did not upload KYC records of certain customers onto Central KYC Records Registry (CKYCR) within the prescribed timeline.

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

A penalty of Rs 3.1 lakh has also been imposed on Puran Associates Pvt Ltd for non-compliance with certain provisions of the RBI 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.