RBI imposed penalties on City Union Bank (Rs 10.10 lakh), Mintifi Finserve (Rs 3.10 lakh), and Newa Investments (Rs 2.70 lakh) on May 22, 2026. City Union Bank violated priority sector lending norms by charging fees on agriculture loans up to Rs 25,000 and failed to report SHG data to credit bureaus. Mintifi delayed KYC uploads to central registry. Newa Investments appointed directors without RBI approval, changing over 30% management.

This enforcement action demonstrates RBI's supervisory muscle across different financial entities - scheduled commercial banks, NBFCs, and investment companies. City Union Bank's penalty highlights two critical regulatory failures: charging fees on small agriculture loans (violating priority sector lending guidelines that protect farmers) and non-compliance with SHG-bank linkage reporting requirements essential for financial inclusion monitoring. Mintifi Finserve's penalty reflects RBI's emphasis on digital KYC compliance as fintech integration accelerates. Newa Investments' violation shows RBI's 'fit and proper' criteria enforcement - any management change exceeding 30% directors requires prior approval to ensure governance standards. These penalties, while modest in absolute terms, signal RBI's zero-tolerance approach to regulatory non-compliance across banking ecosystem participants. The timing (May 2026) suggests ongoing supervisory reviews post-COVID recovery period. For banks, this reinforces that priority sector obligations aren't just lending targets but comprehensive compliance frameworks including fee structures and data reporting.