Union Bank of India was issued a monetary penalty by the Reserve Bank of India (RBI) amounting to ₹2,80,050 (Rupees Two lakh eighty thousand and fifty only). This action followed an inspection that identified several operational and compliance deficiencies. The issues included problems related to mutilated notes, cash management processes in currency chests, and ATM cash-out penalties. The bank has confirmed that the impact on its financial and operational standing is Not Significant.
Regulatory Action Against Union Bank of India
Union Bank of India has disclosed that it has been subject to regulatory action by the Reserve Bank of India (RBI). The directive, received on 10.02.2026, levied a penalty totaling ₹2,80,050 (Rupees Two lakh eighty thousand and fifty only) against the bank.
Nature of Violations Identified
The penalty stems from deficiencies observed during a regulatory review concerning the bank’s operational processes. Specifically, the issues cited include:
- Deficiencies observed in mutilated notes handling.
- Shortage of notes noted during inspections.
- Issues related to CCTV surveillance within the currency chest operations.
- Penalties incurred due to ATM cash out failures.
Impact Assessment
The bank has formally assessed the quantifiable impact of these contraventions on its financial, operational, or other activities. Union Bank of India has concluded that the overall impact is Not Significant. Furthermore, the management has assured stakeholders that necessary preventive measures are being implemented immediately to preclude any recurrence of these identified operational shortcomings.
Source: BSE
