City Union Bank Faces RBI Penalty of Rs 10.10 Lakh for Regulatory Non-Compliance
Mubmai: City Union Bank Limited has informed the stock exchanges regarding the imposition of a monetary penalty by the Reserve Bank of India for certain regulatory non-compliances identified during supervisory inspection.
The disclosure was submitted to National Stock Exchange of India Limited and BSE Limited in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
According to the filing, the penalty has been imposed by the Reserve Bank of India following its Statutory Inspection for Supervisory Evaluation conducted for the position as on March 31, 2025.
The RBI observed non-compliance related to priority sector lending norms and reporting requirements. Specifically, the bank was found to have levied loan-related charges on certain agriculture priority sector loans above the prescribed threshold and failed to report Self Help Group (SHG) member-level data to Credit Information Companies.
Based on these observations, the RBI imposed a total monetary penalty of Rs 10,10,000, comprising Rs 10,00,000 for priority sector lending-related issues and Rs 10,000 for SHG data reporting non-compliance.
The bank stated that the speaking order dated May 20, 2026, was received on May 22, 2026, communicating the penalty details.
The company clarified that the penalty is monetary in nature and has been disclosed in compliance with applicable SEBI regulations.
This disclosure is submitted for information and records.