RBI slaps Rs 1 crore penalty on Union Bank of India for non-compliance of KYC norms | business news | Hindustan Times
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RBI slaps Rs 1 crore penalty on Union Bank of India for non-compliance of KYC norms

The Reserve Bank of India said a notice was issued to the Union Bank of India after it received a complaint about ‘huge cash withdrawals in certain accounts’ maintained with the state-owned lender.

business Updated: Jul 31, 2017 17:46 IST
Press Trust of India, Mumbai
RBI,Reserve Bank of India,Union Bank
The RBI said after considering the Union Bank of India’s reply, oral submissions, additional information and documents, it concluded that the charge was substantiated and warranted imposition of monetary penalty. (Reuters File Photo)

The Reserve Bank of India said on Monday that it has imposed a penalty of Rs 1 crore on state-owned Union Bank of India for “non-compliance” with the directions on Know Your Customer (KYC) norms.

The RBI said it had received a complaint about “huge cash withdrawals in certain accounts” maintained with Union Bank of India.

The penalty was imposed on July 26.

“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,” the RBI added.

The central bank said it had examined the documents regarding the complaint and notice was issued to the state- owned lender.

The bank was asked to show cause “as to why penalty should not be imposed” for non-compliance with directions issued by the RBI.

The RBI said after considering the bank’s reply, oral submissions, additional information and documents, it concluded that the charge was substantiated and warranted imposition of monetary penalty.

First Published: Jul 31, 2017 17:45 IST