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RBI’s big action against Union Bank of India, fined one crore rupees

RBI’s big action against Union Bank of India

The RBI has imposed a penalty of Rs 1 crore on Union Bank of India for failing to implement regulatory rules. The sale of some debt-laden assets by the bank and certain instructions of the RBI for fraud were not followed, due to which this penalty has been imposed on it. Giving details of the matter, the RBI statement said that it had conducted the Inspection of Monitoring Valuation (ISE) with reference to the financial position of the bank as on March 31, 2019.

RBI said penalty will not affect customer services

RBI said that this action is completely related to compliance with the rules issued by the regulator (RBI). It has nothing to do with any transaction or agreement of Union Bank. According to the agreements made by Union Bank with its customers, they will continue to get its services. It will not affect the functioning of the bank.

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The bank did not take action even after RBI’s warning

According to RBI, Union Bank of India could not classify an account as Red Flag despite early warning signs, nor did it provision of security receipts in the annual report. The RBI had earlier issued a show-cause notice to Union Bank asking why it should not be fined for violating the instructions of the central bank. Union Bank had put forth its stand on this by sending a reply to the central bank. After considering Union Bank’s reply, RBI decided to impose a penalty of Rs 1 crore on it.

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