On Monday (November 29), the Reserve Bank of India (RBI) imposed a penalty of Rs one crore on Union Bank of India for violating certain provisions related to sale of stressed assets and reporting of frauds.
RBI imposed the penalty for non-compliance with certain provisions of directions issued by RBI contained in “RBI (Fraud-Classification& Reporting by commercial banks&select FIs) Directions 2016” & “Guidelines on Sale of Stressed Assets by Banks.
The RBI inspection revealed non-compliance with rules on classification of an account as red flag account despite presence of early warning signals and also failure to disclose provisioning for Security Receipts (SRs) in its Annual Report, the central bank said, according to a report in Moneycontrol.
