RBI Imposes a Fne of Rs 1 crore on Union Bank Of India

New Delhi Reserve Bank of India has imposed a fine of Rs 1 crore on Union Bank of India. The central bank has imposed this fine due to the failure of the Union Bank to detect fraud and report timely.
Union Bank of India said in regulatory filing on Friday, "It is reported that the Reserve Bank of India has imposed a penalty of 10 million rupees (one crore rupees). The reason for the fine is delay in catching and informing fraud. RBI has imposed this penalty under the Banking Regulation Act. "

Under the Act, the RBI issued show-cause notices to the Union Bank on January 15, 2018. In this, the RBI asked the bank for not penalizing the penalty. After this the bank had responded to RBI on February 1. After this, on 14th April, the bank had made an oral request in the personal hearing (Personal Hearing) before the Committee of Executive Directors of the RBI.

Union Bank said, "The bank has received adequate documents along with the response and oral representation in the personal hearing, has been found insufficient on behalf of the RBI, which has imposed a fine of Rs 1 crore."