What changed

The Reserve Bank of India (RBI) has levied a penalty of ₹50,000 on The Tanur Co-operative Urban Bank Limited for failing to upload customer Know Your Customer (KYC) records to the Central KYC Records Registry (CKYCR). This action stems from a statutory inspection as of March 31, 2025, and highlights deficiencies in regulatory compliance regarding KYC directions.

While this enforcement action is based on compliance failures and not on the validity of customer transactions, it serves as a reminder for financial institutions to ensure timely and accurate uploading of KYC data. The penalty is imposed under the Banking Regulation Act, and further actions by the RBI against the bank are not precluded.

What to do next

Ensure all customer KYC records are uploaded to the Central KYC Records Registry (CKYCR) in compliance with RBI directions.

Penalties

₹50,000

Source document (simplified)

Press Releases

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| Date : Mar 23, 2026 | |
| RBI imposes monetary penalty on The Tanur Co-operative Urban Bank Limited, Kerala | |
| | The Reserve Bank of India (RBI) has, by an order dated March 20, 2026, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Tanur Co-operative Urban Bank Limited, Kerala (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. 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.

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 and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:

The bank had failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR).

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: 2025-2026/2312 | | The Reserve Bank of India (RBI) has, by an order dated March 20, 2026, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Tanur Co-operative Urban Bank Limited, Kerala (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. 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.

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 and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:

The bank had failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR).

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: 2025-2026/2312 |
| The Reserve Bank of India (RBI) has, by an order dated March 20, 2026, imposed a monetary penalty of ₹50,000/- (Rupees Fifty Thousand only) on The Tanur Co-operative Urban Bank Limited, Kerala (the bank) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. 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.

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 and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:

The bank had failed to upload the KYC records of customers onto Central KYC Records Registry (CKYCR).

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: 2025-2026/2312 | |