The Reserve Bank of India (RBI) has imposed a penalty of ₹5,97,650.00 on Union Bank due to deficiencies observed in regulatory compliance. The penalty relates to issues such as shortages, counterfeit notes, mutilated notes in remittance, and non-conduct of surprise verifications. Union Bank has taken necessary preventive measures to avoid recurrence of similar instances.
RBI Penalty Imposed
Union Bank has been penalized by the Reserve Bank of India (RBI) with a fine of ₹5,97,650.00. The penalty was levied due to non-compliance issues and deficiencies noted by the regulatory authority.
Details of the Deficiencies
The deficiencies leading to the penalty included issues related to shortages, counterfeit notes, and mutilated notes discovered during remittance processes. Further deficiencies stemmed from non-conduct of surprise verifications and certain other shortcomings. The date of receipt of the direction regarding the penalty was September 17, 2025.
Bank’s Response
Union Bank has stated that it has taken the necessary preventive steps to avoid the recurrence of such instances. The bank is committed to adhering to the compliance standards set by the RBI. The bank has classified the impact on financial and operational activities as Not Significant.
Source: BSE
