RBI Fines Canara, BOI, and J&K Bank for Non-Compliance

The Reserve Bank of India (RBI) has recently imposed monetary penalties on Canara Bank, Bank of India, and Jammu & Kashmir Bank due to various regulatory compliance deficiencies.

Jammu and Kashmir Bank

  • Penalty Amount: ₹3.31 crore
  • Reason: Violation of norms related to financial inclusion, Know Your Customer (KYC) guidelines, and statutory restrictions on loans and advances.

Bank of India

  • Penalty Amount: ₹1 crore
  • Reason: Non-compliance with specific provisions of the Banking Regulation Act, 1949.

Canara Bank

  • Penalty Amount: ₹1.63 crore
  • Reason: Non-adherence to directions on priority sector lending, interest rates on deposits, and financial inclusion concerning Basic Savings Bank Deposit Accounts (BSBDA).

These penalties underscore the RBI’s ongoing efforts to enforce regulatory compliance within the banking sector. In recent years, the central bank has intensified its scrutiny, imposing fines on several financial institutions for various infractions, including non-adherence to KYC norms, deficiencies in regulatory compliance, and lapses in cybersecurity measures. The current actions against Canara Bank, Bank of India, and Jammu & Kashmir Bank highlight the importance of strict adherence to regulatory guidelines to maintain the integrity and stability of the financial system.

Summary of the news

Topic Details
Why in News RBI penalized Canara Bank (₹1.63 crore), J&K Bank (₹3.31 crore), and Bank of India (₹1 crore) for regulatory non-compliance in areas like loans, data, and KYC.
Canara Bank Penalized for failing to link retail/MSME loans to external benchmarks, dummy mobile numbers in accounts, and improper customer due diligence.
Jammu & Kashmir Bank Penalized for incorrect data submissions to CRILC, extending loans without due diligence, and SWIFT-CBS mismatch.
Bank of India Penalized ₹1 crore for undisclosed regulatory non-compliance.
Canara Bank (Static) HQ: Bengaluru, Karnataka; Established: 1906; Tagline: “Together We Can.”
Bank of India (Static) HQ: Mumbai, Maharashtra; Established: 1906; Tagline: “Relationship Beyond Banking.”
Piyush Shukla

Recent Posts

Weekly Current Affairs One Liners 16th to 22nd of February 2026

Weekly Current Affairs One-Liners Current Affairs 2026 plays a very important role in competitive examinations…

10 hours ago

Which District is known as the Medical City of Uttar Pradesh?

Did you know that one district in Uttar Pradesh is famous for its advanced hospitals…

1 day ago

Which was the First Women’s University in India? Where it is Located?

Did you know that there was a time when girls in India were not allowed…

1 day ago

L&T Vyoma to Study 250 MW Green AI Data Centre at Dholera SIR

At India AI Impact Summit 2026, the Gujarat government signed a Memorandum of Understanding (MoU)…

1 day ago

Made in India: Nadda Launches Indigenous Td Vaccine at Kasauli Centre

Union Health Minister Jagat Prakash Nadda launched the indigenously manufactured Tetanus and Adult Diphtheria (Td)…

1 day ago

Which Island is known as the Island of Pepper?

Did you know that one small island became famous across the world because of a…

1 day ago