AnyTime News 
₹63.60 Lakh Penalty Exposes Compliance Gaps in Public Sector Bank
Lapses in Financial Inclusion Norms Raise Serious Concerns
Anytime News Network – Pooja Srivastava
. Reserve Bank of India (RBI) has imposed a monetary penalty of ₹63.60 lakh on Central Bank of India for non-compliance with key regulatory directions related to Know Your Customer (KYC) norms and Basic Savings Bank Deposit Accounts (BSBDA). The action highlights significant gaps in the bank’s adherence to statutory guidelines.
The penalty follows the Statutory Inspection for Supervisory Evaluation (ISE 2025), conducted with reference to the bank’s financial position as of March 31, 2025. RBI’s findings revealed that the bank failed to upload KYC records of certain customers to the Central KYC Records Registry within the prescribed timeline—an oversight that could potentially expose the system to financial and compliance risks.
In another major lapse, the bank was found to have opened multiple BSBDA accounts for customers who already held such accounts, violating the core objective of financial inclusion and raising questions about internal controls and monitoring mechanisms.
Although RBI clarified that the penalty is strictly related to compliance deficiencies and does not affect the validity of customer transactions, the incident underscores deeper concerns about governance and accountability within the bank.
Experts believe that such regulatory breaches not only damage the institution’s credibility but also erode customer trust in the broader banking system. The case brings into focus the urgent need for stronger compliance frameworks and stricter internal audits within public sector banks.
The bigger question now remains: will corrective measures follow, or will such lapses continue to surface in the future?
