RBI imposes Rs 1 crore penalty on Union Bank of India

The Reserve (RBI) today imposed a monetary penalty of Rs one crore on for violating certain provisions related to sale of stressed assets and reporting of frauds.

“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,” read the statement from RBI.

“The RBI inspection revealed non-compliance with rules on classification of an account as red flag account despite presence of early warning signals and also failure to disclose provisioning for Security Receipts (SRs) in its Annual Report,” read the circular.

On November 26, the RBI had imposed monetary penalty on country’s largest lender (SBI) for violation of certain rules.

Source link

Spread the word!

Leave a Comment

Your email address will not be published. Required fields are marked *