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Exposed By RBI! Canara Bank Arbitrarily Froze Fully Active Customer Accounts In A Shocking System Failure!
Pooja Shrivastava, Anytime News Network
In a sensational and deeply embarrassing development for public sector banking, the Reserve Bank of India (RBI) has severely penalized Canara Bank, slapping it with a whopping monetary penalty of ₹41.80 lakh! The executive order, signed off by Chief General Manager Brij Raj, comes as a brutal reality check for the banking giant after it was caught red-handed flouting core regulatory guidelines that protect ordinary account holders.
Massive Failure in Digital Central Registry According to the explosive findings compiled during the Statutory Inspection for Supervisory Evaluation (ISE 2025), Canara Bank deliberately dragged its feet on critical anti-money laundering and ‘Know Your Customer’ (KYC) protocols. The bank miserably failed to upload vital customer KYC records onto the Central KYC Records Registry (CKYCR) within the legally mandated timelines, dangerously compromising digital banking security architectures.
The Illegitimate Account-Freezing Gimmick! But the absolute peak of this institutional anarchy lies in how the bank treated its loyal customers. The central bank’s probe unmasked a terrifying practice where Canara Bank arbitrarily classified perfectly operational customer accounts as ‘inoperative’ or ‘dormant’—even though the desperate customers had actively induced financial transactions in those accounts less than a year ago! When RBI served a strict show-cause notice, the bank’s top management tried to offer a web of explanations during personal hearings, but all charges were sustained. While RBI clarified this won’t alter valid ongoing legal contracts, the penalty serves as a dark reminder to millions of customers that even their active savings could be targeted by such bureaucratic high-handedness!
