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Key Points

The Reserve Bank of India has imposed a penalty of Rs 1.66 lakh on Union Bank of India for discrepancies in soiled note remittance. Despite the penalty, the bank reports a strong financial performance with a 50.6% increase in net profit for the quarter. Union Bank has acknowledged the fine and stated that it has taken preventive measures to avoid similar issues in the future. The bank's asset quality has also shown improvement, with gross non-performing assets reducing to 3.6% from the previous quarter.

Key Points: RBI Fines Union Bank Rs 1.66 Lakh for Note Remittance Errors

  • RBI penalizes Union Bank for cash remittance irregularities
  • Bank reports 50.6% net profit jump in Q4
  • Gross NPA improves to 3.6% from previous quarter
  • Recommends Rs 4.75 dividend per equity share
2 min read

RBI imposes over Rs 1.66 lakh penalty on Union Bank of India

RBI penalizes Union Bank over soiled note remittance discrepancies, bank reports minimal impact and preventive measures taken

"Penalty imposed is Rs 1,66,868.84 - Union Bank of India Stock Exchange Filing"

Mumbai, May 17

The Reserve Bank of India (RBI) has imposed a penalty of more than Rs 1.66 lakh on Union Bank of India over discrepancies observed in soiled note remittance, the bank said on Saturday.

In a stock exchange filing, Union Bank of India said “In compliance with Regulation 30(4) read with Schedule III, Part A Clause 20 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that the Reserve Bank of India has imposed a penalty of Rs 1,66,868.84 (Rupees one lakh sixty-six thousand eight hundred sixty-eight and eighty-four paise only)”.

This is because of the discrepancies observed in the bank's “soiled note remittance to RBI and ATM cash out”, according to the exchange filing.

According to the bank, the impact on financial, operation or other activities of the bank is not significant.

The bank has taken necessary preventive measures to avoid recurrences of such instances, it said.

For the quarter ended March, Union Bank of India's net profit jumped 50.6 per cent on year to Rs 4,985 crore.

Net interest income rose 1 per cent to Rs 9,514 crore versus Rs 9,437 crore last year.

Consequently, net interest margin was at 2.87 per cent for the quarter ended March from 2.91 per cent a quarter ago.

Union Bank's asset quality saw improvement from the previous quarter, with Gross NPA at 3.6 per cent from 3.85 per cent in the December quarter, while net NPA stood at 0.82 per cent from 0.63 per cent compared to the December quarter.

The bank’s board has recommended a dividend of Rs 4.75 per equity share of Rs 10 each for the financial year 2024-25.

The payment of dividends is subject to obtaining the necessary statutory approvals and the approval of the shareholders of the bank at the 23rd Annual General Meeting (AGM).

—IANS

- IANS

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Reader Comments

R
Rajesh K.
RBI is doing its job well by keeping banks in check. Even though the penalty amount seems small for a big bank like Union Bank, such strict monitoring ensures public trust in our banking system. Hope they fix these discrepancies soon. 👍
P
Priya M.
Interesting that the bank's profits jumped 50% while getting fined for operational lapses. Shows how strong their financials are despite these issues. But they should be more careful with cash handling - it's public money after all!
A
Amit S.
Rs 1.66 lakh penalty is just pocket change for Union Bank when their quarterly profit is nearly Rs 5000 crore! RBI should impose stricter penalties that actually make banks take these issues seriously. This is like a slap on the wrist.
S
Sunita R.
As a customer of Union Bank, I'm concerned about these "discrepancies in soiled note remittance". What exactly does this mean? Are they not handling currency properly? RBI should make banks explain such issues in simpler terms for common people to understand.
V
Vikram J.
Good to see RBI maintaining strict oversight. But I'm more impressed by Union Bank's financial turnaround - from being in trouble few years back to now declaring dividends! Shows the success of banking reforms under Modi government.
N
Neha T.
The penalty amount is so specific - Rs 1,66,868.84! 😄 Must be calculated based on exact discrepancies. On serious note, hope this doesn't affect services to customers. Many of us rely on Union Bank for our daily banking needs.

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