RBI imposes monetary penalty on Union Bank of India

Case Brief

By an order dated August 06, 2024, RBI imposed a monetary penalty of ₹1,06,40,000 on Union Bank of India. The penalty was based on supervisory findings from the bank’s ISE 2022 inspection, which identified non-compliance with RBI directions on creation of a Central Repository of Large Common Exposures Across Banks and on KYC requirements. RBI said the bank failed to ensure data accuracy and integrity in CRILC reporting and failed to carry out risk categorisation of certain customers. The penalty was imposed under the Banking Regulation Act, 1949, after the bank’s reply and oral submissions were considered.