RBI Imposes Penalty of ₹10.10 Lakhs on City Union Bank for Non-Compliance
City Union Bank Limited has confirmed that the Reserve Bank of India (RBI) levied a monetary penalty against the bank. The penalty resulted from a Statutory Inspection for Supervisory Evaluation conducted as of March 31, 2025.The RBI issued the charges on May 22, 2026, citing two main areas of non-compliance. The violations included the practice of levying loan related charges on certain agriculture priority sector loans up to ₹25,000/-. Additionally, the bank failed to report Self Help Group member level data to Credit Information Companies.
The cumulative penalty assessed by the RBI for these contraventions totals ₹10.10 lakhs (Rupees Ten Lakh Ten Thousand only).
The following table details the key findings and the financial impact of the charges:
| Particulars | Details |
|---|---|
| Issuing Authority | Reserve Bank of India |
| Action Taken | Penalty Imposition |
| Inspection Date | March 31, 2025 |
| Date of Order | May 22, 2026 |
| Nature of Violation | Non-compliance with provisions regarding Priority Sector Loan accounts and Self Help Group (SHG) member level data reporting to Credit Information Companies (CICs). |
| Financial Impact | ₹10,10,000/- |
CUB Stock Price Movement
On Friday, City Union Bank Limited shares slipped by 1.43% to settle at ₹248.55. The equity saw notable trading activity, with a total traded volume of 731,177 shares recorded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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