RBI imposes monetary penalty on City Union Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of ₹10.10 lakh on City Union Bank Limited by order dated May 20, 2026. The penalty was based on supervisory findings from the Statutory Inspection for Supervisory Evaluation conducted with reference to the bank’s financial position as on March 31, 2025. RBI said the bank had not complied with certain directions on ‘Priority Sector Loan accounts’ and ‘Reporting of Self Help Group (SHG) member level data to Credit Information Companies (CICs)’. Specifically, RBI found that the bank levied loan-related charges on certain agriculture priority sector loans up to ₹25,000 and did not report SHG member-level data to CICs. The penalty was imposed under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.