The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹63.60 lakh (Rupees Sixty Three Lakh Sixty Thousand only) on Union Bank of India for non-compliance with the provisions of Section 26A of the Banking Regulation Act, 1949 (BR Act) and certain directions issued by RBI on Credit Flow to Agriculture - Collateral free Agricultural Loans.
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| RBI Imposes Rs 63.6 Lakh Penalty on Union Bank of India |
RBI Imposes ₹63.6 Lakh Penalty on Union Bank of India
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹63.60 lakh on Union Bank of India for non-compliance with the provisions of Section 26A of the Banking Regulation Act, 1949 (BR Act) and certain directions issued by RBI on Credit Flow to Agriculture - Collateral free Agricultural Loans.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 51(1) of the BR Act.
RBI Imposes Penalty on Union Bank of India: Background
The Statutory Inspections for Supervisory Evaluation (ISE 2023 and 2024) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023 and March 31, 2024.
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RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The bank had not transferred eligible amounts to the Depositor Education and Awareness Fund within the prescribed period; and
- The bank had obtained collateral security for agricultural loans amounting upto ₹1.60 lakh in certain cases.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
About Union Bank of India
Union Bank of India (UBI), established on 11 November 1919, headquartered in Mumbai, was founded by Seth Sitaram Poddar. The tagline of Union Bank of India is Good people to bank with.
The bank opened its first safe deposit vault on April 22, 1939. At the time of India's independence in 1947, Union Bank of India operated just four branches.
Union Bank of India is one of the leading public sector banks of the country. On 1st April 2020 , Andhra Bank and Corporation Bank were amalgamated into Union Bank of India. Today, it has a network of 8600+ domestic branches , 8900+ ATMs, 73,500+ employees and 23,000+ BC Points.
The Bank's total business as of 31st March 2025 stood at Rs. 22,92,644 crore, comprising Rs. 13,09,750 crore of deposits and Rs. 9,82,894 crore of advances.
Overseas Branches of Union Bank of India
The Union Bank of India has 2 overseas branches at Dubai International Financial Centre (UAE) & Sydney (Australia); 1 banking subsidiary at London (UK); 1 banking joint venture in Malaysia; 4 para-banking subsidiaries (domestic); 2 joint ventures and 1 associate -Andhra Pradesh Grameen Bank.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Union Bank of India for upcoming exams
- Founded: 11 November 1919
- Founder: Sardar Shashisekhar Singh Bhumihar Seth Sitaram Poddar
- Headquarters: Mumbai, Maharashtra
- Non-executive Chairman: Srinivasan Varadarajan
- Managing Director & CEO: A. Manimekhalai
- Number of employees: 73,500+ (2025)
- Number of branches: 8600+ branches
- Number of ATMs: 8900+ ATMs
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