Union Bank of India has disclosed that the Reserve Bank of India (RBI) has imposed a monetary penalty totaling ₹95,40,000 (Rupees Ninety-Five Lakh Forty Thousand only). The penalty stems from non-compliance related to directions concerning unauthorized electronic banking transactions and deficiencies in its Income Recognition, Asset Classification, and Provisioning processes. The bank confirmed it has implemented corrective measures to prevent future recurrences.
Penalty Imposed by Regulatory Authority
Union Bank of India announced receiving an order from the Reserve Bank of India (RBI) on March 27, 2026, confirming the imposition of a penalty amounting to ₹95,40,000 (Rupees Ninety Five Lakh Forty Thousand only). This disclosure is made in compliance with mandatory reporting requirements for listed entities.
Details of Contraventions
The penalty arises from three specific areas of non-adherence to RBI directions:
- Unauthorized Electronic Transactions Handling: The Bank failed to credit (shadow reverse) amounts involved in unauthorized electronic transactions to customer accounts within the stipulated 10 working days after receiving notification from the customer.
- Complaint Lodging Mechanism: The Bank did not provide a direct link with a specific option to report unauthorized electronic transactions on the homepage of its website, as required for facilitating customer redressal.
- Asset Quality Process Failures: Deficiencies were noted in compliance with directions related to Income Recognition, Asset Classification, and Provisioning processes, specifically concerning Automated Processes for Income Recognition and Asset Classification.
Financial and Operational Impact
The Bank assessed the impact of these findings on its operations and financial standing. The extent to which the penalty is quantifiable in monetary terms relative to the listed entity’s operations was deemed Not Significant.
Corrective Action Taken
Union Bank of India affirmed that it has subsequently taken necessary preventive measures to address the identified issues and to avoid any recurrence of similar instances in the future.
Source: BSE
