Reserve Bank: Union Bank fined Rs 1 crore, second major action after SBI

Pankaj Prasad
Pankaj Prasad 29/11/2021 22:39 IST
business, rbi, fine on banks, union bank, sbi, fraud classification, stressed assets

Fine on Union Bank of India: The Reserve Bank has taken this action due to the violation of the rules for classification and reporting of scams. 

The Reserve Bank is now taking a tough stand on the violation of banking rules. First the biggest bank SBI was fined and now Union Bank of India has been fined Rs 1 crore.

The Reserve Bank has taken this action due to violation of guidelines on classification and reporting of scams and sale of stressed assets. The Reserve Bank of India (RBI) last week imposed a fine of Rs 1 crore on the country's largest bank State Bank of India (SBI) and Rs 1.95 crore on Standard Chartered Bank for violating banking rules and reporting of scams.

The central bank took action against SBI after it was found in the account investigation of a customer that the bank had delayed in reporting about the scam in his account. RBI had issued notice to SBI for this negligence. After receiving a reply to the report from the bank, a fine of Rs 1 crore was imposed on SBI. The RBI said in a statement that Union Bank of India did not comply with the instructions contained in the Frauds – Classification and Reporting Direction 2016 by Commercial Banks and Select Financial Institutions.

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RBI said that there are also various cases of violation of 'customer protection, limited liability of customers in unauthorized electronic banking transactions', 'cyber security framework in banks', 'credit card operations of banks' and code of conduct for the outsourcing of financial services'. Action has been taken against the banks. A penalty of Rs 1.95 crore has been imposed on Standard Chartered Bank under the same provision

Category: Business