Reserve Bank of India imposes monetary penalty on Union Bank of India
Case Brief
On July 26, 2017, RBI imposed a monetary penalty of ₹10 million on Union Bank of India. The bank was found to have failed to comply with certain RBI directions on Know Your Customer (KYC) norms, after RBI examined a complaint about huge cash withdrawals in certain accounts, issued a show-cause notice, and reviewed the bank’s response and supporting material. RBI cited Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after finding that Union Bank of India had failed to adhere to certain directions issued by RBI on Know Your Customer (KYC) norms. The action followed a complaint about huge cash withdrawals in certain accounts, a show-cause notice, and consideration of the bank’s reply, oral submissions, and additional documents. RBI stated the penalty was based on deficiencies in regulatory compliance and did not pronounce on the validity of any customer transaction or agreement.
Severity Assessment
The action is a monetary penalty of ₹10 million, which falls in the Rs 10 lakh to Rs 20 lakh band, giving severity 3.
Union Bank of India must absorb the monetary penalty and address the compliance deficiencies identified by RBI. The decision has no stated effect on the validity of customer transactions, but it underscores continued regulatory scrutiny of the bank’s KYC compliance and related account-level controls.
Published as Union Bank of India
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.
Union Bank of India
Monetary penalty · Fresh imposition
Union Bank of India
Monetary penalty · Fresh imposition
Union Bank of India
Monetary penalty · Fresh imposition
Union Bank of India
Monetary penalty · Fresh imposition
Union Bank of India
Monetary penalty · Fresh imposition
© 2026 RegOversight by OddVector