The Reserve Bank of India (RBI), through an order dated September 1, 2025, has imposed a monetary penalty of Rs 4.5 lakh on The Urban Co-operative Bank Ltd., Cuttack, Odisha, for non-compliance with KYC guidelines.
The penalty follows an RBI inspection of the bank’s financials as of March 31, 2024. Based on supervisory findings and subsequent proceedings, RBI determined that the bank had failed to upload customer KYC records to the Central KYC Records Registry (CKYCR) within the stipulated timeline.
RBI clarified that the action is based on regulatory compliance deficiencies and does not affect the validity of transactions or agreements with customers. The penalty is without prejudice to any further action RBI may initiate against the bank.