City Union Bank: RBI Imposes ₹10.1 Lakh Penalty

The Reserve Bank of India (RBI) has imposed a penalty of ₹10.1 lakhs on City Union Bank Ltd due to non-compliance with certain provisions related to priority sector loans and reporting of Self Help Group (SHG) member level data to Credit Information Companies (CICs). The penalty was levied following a Statutory Inspection for Supervisory Evaluation of the Bank as of March 31, 2025. The 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.