Case Brief
What Happened
RBI, by order dated March 23, 2026, imposed a monetary penalty on Union Bank of India after a statutory inspection and subsequent show-cause process. The bank was found to have violated RBI directions relating to limiting customer liability in unauthorised electronic banking transactions and the automation of income recognition, asset classification and provisioning processes, including delayed shadow reversals, lack of 24x7 multi-channel reporting access for customers, and manual intervention in system-based asset classification for certain KCC accounts. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.