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The Reserve Bank of India (RBI) has imposed a total monetary penalty of ₹7.30 lakh on Canara Bank in connection with ATM cashout issues involving ATMs in Karnataka and Tamil Nadu. The bank disclosed the penalties in a regulatory filing dated October 29, 2026, submitted to the BSE and the National Stock Exchange (NSE) under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
According to the disclosure, the RBI imposed a penalty of ₹4.70 lakh in connection with 47 ATMs operating in Karnataka. It also imposed a penalty of ₹2.60 lakh relating to 26 ATMs operating in Tamil Nadu. The total penalty imposed on the bank is ₹7.30 lakh.
ATM cashout means a situation where a customer withdraws cash from an ATM, but the transaction is not completed correctly. In banking, the term can refer to issues such as cash not being dispensed despite the account being debited, or other failures in ATM cash withdrawal services.
Canara Bank stated that the matter relates to ATM cashout. The bank received the relevant communication from the RBI on October 29, 2026. In its filing, the bank said that the financial impact of the action would be limited to the penalty amount of ₹7.30 lakh.
The bank submitted the information to the stock exchanges for their records and in compliance with regulatory disclosure requirements. The filing was signed by Santosh Kumar Barik, Company Secretary of Canara Bank.
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The disclosure does not provide further details about the specific circumstances behind the ATM cashout issues or any additional action taken by the RBI.
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