RBI slaps Rs 10.10 lakh penalty on City Union Bank, 2 more entities

The Reserve Bank of India (RBI) on Friday said it has imposed monetary penalty on City Union Bank, Mintifi Finserve, and Newa Investments, for non-compliance with certain directions.

The central bank imposed Rs 10.10 lakh monetary penalty on City Union Bank, Rs 3.10 lakh on Mintifi Finserve, and Rs 2.70 lakh on Newa Investments, the RBI said in a release.

The penalty on the City Union Bank was imposed as the lender levied loan-related charges on certain agriculture advances qualifying as priority sector loans up to Rs 25,000, and it did not report self-help group member level data to credit information companies, the release said.

Mintifi Finserve was penalised as the company did not upload KYC records of certain customers onto central KYC records registry within the prescribed timeline.

Further, monetary penalty on Newa Investments was imposed as the company did not take prior written permission of the RBI while appointing directors, which resulted in change in its management on account of change in more than 30 per cent of its directors, excluding independent directors, the RBI said in a release.

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