RBI slaps Rs 3 Cr penalty on Union Bank for violating KYC
Published: Aug 01, 2017
By TIOLCORPLAWS News Service
MUMBAI, AUG 01, 2017: IN response to NSE query, the Union Bank of India today confirmed that the RBI has imposed a penalty of Rs. 30 million on the Bank for non-compliance with the directions issued by RBI on Know Your Customer (KYC) norms on examination of certain accounts with substantial transactions.
The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949. The Bank informed that it has taken necessary preventive measures and has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur.