Reserve Bank of India imposes monetary penalty on Union Bank of India
Case Brief
On August 30, 2018, RBI imposed a monetary penalty of ₹10 million on Union Bank of India. The penalty was levied for contravention of instructions contained in the Master Circular on Fraud – Classification and Reporting, with RBI noting that the bank delayed detecting and reporting a fraud in an account. The penalty was imposed under 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. The bank was found to have contravened instructions contained in RBI's Master Circular on Fraud – Classification and Reporting, specifically due to delay in detecting and reporting a fraud in an account.
Severity Assessment
The action is a monetary penalty of ₹10 million (₹1 crore), which falls in severity band 3 under the monetary rubric.
Union Bank of India must bear the monetary penalty and the order serves as a compliance signal regarding fraud detection and reporting obligations. The release does not mention any operational restriction on the bank or direct impact on customers beyond the enforcement action.
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