penalty on Union Bank

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.

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