Canara Bank is among four banks that received interim protection from the Delhi High Court, which ruled that its non-encashment of Reliance Communications' Rs 800 crore bank guarantees will not be considered a Reserve Bank of India default until September 3. The court is hearing Canara Bank's challenge to the Department of Telecommunications' invocation of the guarantees, which the bank argues is without jurisdiction and liable to be quashed.

Canara Bank's Rs 157.08 crore bank guarantee furnished for Reliance Communications Limited's deferred spectrum payments was invoked by the Department of Telecommunications on August 15 as part of about Rs 801.91 crore in guarantees relating to spectrum bought in 2013-2016 auctions. The Supreme Court declined Reliance Communications' plea to stay the encashment and directed it to seek relief before the High Court.

Canara Bank is offering 6.50% interest on 3-5 year FCNR (B) US dollar deposits below USD 1 million as of August 17, 2026, following the RBI's June decision for the government to bear hedging costs on such deposits until August 31, 2026.