penalty on Union Bank

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52640

RBI has imposed a penalty of Rs.10 million on Union Bank of India, a nationalised bank, ostensibly for non compliance with RBI guidelines on fraud – classification and reporting and on sale of stressed assets by the bank.

In absence of detailed adjudication orders, unable to understand the exact nature and circumstances of the default by the said Bank.

Failure to classify an account as red flag account despite early warning signs and failure to disclose aging and provisioning of security receipts in its annual report. These are the bare minimum concise details of the nature of the defaults.

Leave a comment

Filed under banking laws

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s