RBI Imposes Rs 1 Crore Penalty on Union Bank of India

RBI has imposed a penalty of Rs 1 crore on Union Bank of India for violating certain provisions related to sale of stressed assets and fraud reporting

Reserve Bank of India (RBI) has imposed a penalty of Rs one crore on Union Bank of India for violating certain provisions related to sale of stressed assets and reporting of frauds.

An inspection conducted by the RBI revealed non-compliance with rules on classification of an account as red flag account, despite presence of early warning signals and also the bank's failure to disclose provisioning for security receipts (SRs) in its annual report, the RBI said in a statement.

This action is based on the 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, the RBI said.