Key facts
- RBI imposed a penalty on Canara Bank.
- Canara Bank misclassified accounts as inoperative.
- The misclassified accounts had customer transactions within the last year.
The Reserve Bank of India (RBI) has levied a penalty on Canara Bank due to certain operational lapses. Specifically, the bank was found to have classified some customer accounts as inoperative, despite these accounts having had a customer-induced transaction within the past year. Typically, accounts are classified as inoperative if there has been no transaction for a period of one year. This action by the RBI highlights the importance of adhering to regulatory guidelines regarding account classifications and customer transaction monitoring.