Union Bank fined Rs 3 crore for KYC non-compliance

Mumbai, July 31 

The RBI today said it has imposed Rs 3 crore penalty on state-owned Union Bank of India for “non-compliance” with the directions on Know Your Customer (KYC) norms in two separate cases.

While in one case a penalty of Rs 2 crore has been imposed, Rs 1 crore has been slapped in another case.

The RBI said based on media reports related to a fraud in a bank, it conducted an examination of certain accounts in Union Bank of India, which had substantial transactions.

“Upon examination of the documents obtained in this regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with directions issued by RBI,” the central bank said.

The second case related to a complaint regarding “huge cash withdrawals in certain accounts”. Both the penalties were imposed on July 26.

RBI added however that the penalties were imposed due to deficiencies in regulatory compliance and “not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers”. — PTI