RBI has taken strict action against another bank. RBI has imposed a penalty of Rs 1 crore on Union Bank of India. RBI has imposed this penalty under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949.
This penalty has been imposed on Union Bank of India because the bank did not follow some instructions. Along with this, a term loan was sanctioned to a corporation in lieu of substitute budgetary resources for some projects, for which the bank did not do due diligence.
RBL also fined
Along with Union Bank, RBI has also imposed penalty on RBL Bank. RBI has imposed a fine of Rs 8.50 lakh on RBL Bank. RBI has imposed this penalty on Bajaj Finance for not following the instructions to monitor fraud in NBFCs.
RBL Bank failed to obtain the annual declaration in Form B from one of its major shareholders within one month of the closing of the 3 financial years ending March 31, 2018, March 31, 2019 and March 31, 2019. 2020, and submit a certificate to the RBI regarding the continuing ‘fit and proper’ status of one of its major shareholders by the end of September of the said 3 financial years, a release issued by the RBI said.
