Case Brief
What Happened
RBI, by order dated November 25, 2021, imposed a monetary penalty of Rs 1 crore on Union Bank of India under the Banking Regulation Act, 1949. The penalty was based on inspection findings that the bank had not complied with RBI directions relating to fraud classification/reporting and sale of stressed assets, including failure to classify an account as a Red Flag Account despite Early Warning Signals and failure to disclose ageing and provisioning for Security Receipts in its Annual Report.