Informist, Monday, Nov 29, 2021

MUMBAI – The Reserve Bank of India today imposed a penalty of 10 mln rupees on Union Bank of India for not complying with directions pertaining to classification and reporting of frauds, and guidelines on sale of stressed assets.

"This action is based on the 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 in a release.

The RBI had conducted the Statutory Inspection for Supervisory Evaluation of the bank with reference to its financial position as on Mar 31, 2019.

An examination of risk assessment report, inspection report and other reports revealed the breach of norms. The bank failed to classify an account as Red Flag Account despite the presence of early warning signals and to disclose ageing of and provisioning for security receipts in its annual report, the release said.

The penalty was imposed despite the RBI receiving Union Bank's response on the issue, along with oral submissions.

Shares of the Union Bank of India closed 1% lower today at 43.25 rupees on the National Stock Exchange.  End

Reported by Shreejit Nair

Edited by Pranav S. Joshi

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