RBI imposed a fine of 1 crore on Union Bank
Highlight
- Penalty is imposed for non-compliance of certain provisions of the directions issued by RBI.
- The action is not intended to impinge on the validity of any transaction.
- RBI imposed a penalty of Rs 1 crore on Union Bank of India.
The Reserve Bank of India on Monday imposed a penalty of Rs. 1 crore on Union Bank of India for non-compliance of certain provisions of the directions issued by RBI. The directions were contained in the ‘RBI (Fraud-Classification and Reporting by Commercial Banks and Select Financial Institutions) Directions 2016’, and ‘Guidelines on Sale of Stressed Assets by Banks’.
RBI said the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
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