RBI imposes Rs. 1 crore penalty on Union Bank of India
New Delhi: According to the RBI press release on October 13, 2023, RBI slaps Rs. 1 crore monetary penalty on Union Bank of India for non-compliance related to the loans and advances reporting under the provision of the Banking Regulation Act, 1949.
In the year 2021, RBI conducted the statutory inspection for supervision evaluation, which revealed the deficiencies in regulatory compliance to the extent it sanctioned a term loan to a corporation, details are below:
- Without undertaking proper due diligence
- Repayment/servicing of which was made out of budgetary.
- Lack of sufficient take care of debt servicing obligation.
Bank are expected to comply to the regulations and guidelines set forth by the RBI to ensure the smooth functioning of the banknig system and protect the interest of stakeholders.
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