Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹1 crore on City Union Bank Limited by order dated May 19, 2021. RBI said the bank had contravened certain provisions of the RBI directions on MSME lending and the circulars on educational loans and agricultural loans relating to waiver of margin/security requirements. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after inspection findings, a show-cause notice, and review of the bank’s replies and submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 1.00 Cr
- Entity Type
- Bank
- Action Type
- Monetary penalty