RBI Crackdown: Central Bank of India Slapped with ₹63.6 Lakh Penalty Over KYC, BSBDA Lapses
MUMBAI, March 27, 2026: The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹63.60 lakh on the Central Bank of India for non-compliance with critical regulatory directives. The penalty follows an inspection that revealed gaps in the bank's adherence to "Know Your Customer" (KYC) norms and "Financial Inclusion" guidelines.
The Violations
According to the bank's filing with the exchanges, the penalty was triggered by lapses in two specific areas:
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KYC Directions: Failure to strictly follow the mandated procedures for identifying and verifying customer identities.
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Basic Savings Bank Deposit Accounts (BSBDA): Non-compliance with rules regarding "Access to Banking Services," which are designed to ensure the underprivileged have seamless access to zero-balance accounts.
Legal Authority
The RBI exercised its powers under Section 47A(1)(c), read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949. While the penalty amount is not considered "material" relative to the bank's total asset size, it serves as a stern reminder of the central bank's tightening grip on operational compliance within the PSU banking space.