Case Brief
What Happened
On July 26, 2017, RBI imposed a monetary penalty of ₹20 million on Union Bank of India under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. RBI said the bank failed to comply with certain directions issued on Know Your Customer (KYC) norms. The penalty followed scrutiny of certain accounts with substantial transactions after media reports of a fraud, issuance of a show-cause notice, and consideration of the bank’s written reply, oral submissions, and additional documents. RBI clarified that the action was for regulatory non-compliance and did not comment on the validity of any customer transaction or agreement.