RBI imposes monetary penalty on Union Bank of India
New Delhi , July 31 : The Reserve Bank of India (RBI) had earlier this week imposed a monetary penalty of Rs. 10 million on Union Bank of India for non-compliance with the directions issued by the apex bank 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.
Earlier, the RBI had received a complaint regarding huge cash withdrawals in certain accounts maintained with Union Bank of India.
Upon examination of the documents obtained in this regard, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with directions issued by RBI.
After considering the bank's reply, oral submissions made in the personal hearing, as also the additional information and documents furnished, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.