RBI Imposes ₹15.90 Lakh Penalties on City Union Bank and Two NBFCs
Moneylife Digital Team 25 May 2026
Reserve Bank of India (RBI) has imposed penalties of ₹15.90 lakh on City Union Bank Ltd and two non-banking financial companies (NBFCs) for non-compliance with directions issued by the banking regulator. The highest penalty of ₹10.10 lakh was imposed on City Union Bank.
 
The NBFCs penalised are Maharashtra-based Mintifi Finserve Pvt Ltd and West Bengal-based Newa Investments Pvt Ltd.
 
City Union Bank was penalised for non-compliance with RBI directions on priority sector loan accounts and on the reporting of self-help group (SHG) member-level data to credit information companies (CICs).
 
RBI’s statutory inspection found that City Union Bank had levied loan-related charges on certain agricultural priority sector loans of up to ₹25,000. The lender also failed to report SHG member-level data to CICs.
 
Mintifi Finserve was fined ₹3.10 lakh for non-compliance with certain RBI directions relating to know-your-customer (KYC) norms. The company failed to upload the KYC records of certain customers to the Central KYC Records Registry (CKYCR) within the prescribed timeline.
 
Similarly, during its inspection of Newa Investments, RBI found that the NBFC had appointed directors without obtaining prior written approval from the central bank. This led to a change in management, with more than 30% of its directors replaced, excluding independent directors.
 
As a result, RBI penalised Newa Investments to the tune of ₹2.70 lakh.
 
In all three cases, RBI clarified that the penalties were based on deficiencies in regulatory compliance and were not intended to pronounce on the validity of any transactions or agreements entered into by these entities with their customers.
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