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The Reserve Bank of India (RBI) has imposed monetary penalties on City Union Bank, Mintifi Finserve, and Newa Investments for non-compliance with regulatory directions. City Union Bank was fined INR 10.10 lakh for charging loan-related fees on certain priority sector agricultural loans and for failing to report self-help group member-level data to credit information companies. Mintifi Finserve was penalised INR 3.10 lakh for delays in uploading KYC records to the central registry. Newa Investments was fined INR 2.70 lakh for governance-related violations involving changes in its board structure without prior RBI approval.
The Reserve Bank of India (RBI) on Friday imposed monetary penalties on City Union Bank, Mintifi Finserve, and Newa Investments for non-compliance with specific regulatory directions, according to an official release issued in Mumbai. Advertisement
The central bank levied a penalty of INR 10.10 lakh on City Union Bank for multiple lapses in adherence to regulatory norms. The RBI stated that the bank had charged loan-related fees on certain agricultural advances that qualify as priority sector lending, specifically loans up to INR 25,000, which is not in line with prescribed guidelines. Additionally, the bank failed to report member-level data of self-help groups to credit information companies, which is a mandatory requirement under reporting norms aimed at improving credit transparency in the financial system.
Mintifi Finserve was fined INR 3.10 lakh for non-compliance related to Know Your Customer (KYC) regulations. According to the RBI, the company did not upload KYC records of certain customers to the Central KYC Records Registry within the stipulated timeline. The central registry is designed to streamline customer verification processes and ensure uniformity in financial onboarding across regulated entities.
Newa Investments was penalised INR 2.70 lakh for governance-related violations. The RBI noted that the company had appointed directors resulting in a change in management without obtaining prior written approval from the central bank. The change led to a shift in more than 30 per cent of its directors, excluding independent directors, which requires prior regulatory permission under applicable norms governing non-banking financial companies.
The RBI clarified that the penalties were imposed due to deficiencies in regulatory compliance and do not reflect on the validity of any transactions or agreements entered into by the entities with their customers. The central bank also stated that enforcement action is based on the extent of non-compliance and is intended to reinforce adherence to regulatory frameworks.
Such supervisory actions form part of the RBI’s ongoing monitoring mechanism for banks and non-banking financial companies to ensure compliance with prudential and operational guidelines. The regulator routinely undertakes inspections and issues penalties where deviations are identified, particularly in areas related to priority sector lending, customer data reporting, and governance standards.
The latest action underscores the RBI’s continued emphasis on strengthening compliance discipline across both banking and non-banking financial institutions, particularly in areas involving customer data integrity, lending practices, and corporate governance structures.
Source - PTI
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