Union Bank slapped with Rs. 1 crore penalty by RBI
July 31st, 2017
The RBI has imposed a penalty of Rs. 1 crore on state-owned Union Bank of India for “non-compliance” with the directions on Know Your Customer (KYC) norms. This 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. The central bank said it had examined the documents regarding the complaint and notice was issued to the state-owned lender. The bank was asked to show cause “as to why penalty should not be imposed” for non-compliance with directions issued by the RBI. The RBI said after considering the bank’s reply, oral submissions, additional information and documents, it concluded that the charge was substantiated and warranted imposition of monetary penalty.