RBI Imposes Rs 1 Crore Penalty on Union Bank of India

Reserve Bank of India (RBI) has imposed a penalty of Rs one crore on Union Bank of India for violating sure provisions associated to sale of burdened property and reporting of frauds.An inspection carried out by the RBI revealed non-compliance with guidelines on classification of an account as purple flag account, regardless of presence of early warning indicators and likewise the financial institution's failure to reveal provisioning for safety receipts (SRs) in its annual report, the RBI mentioned in a press release.This motion is predicated on the deficiencies in regulatory compliance and isn't meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects, the RBI mentioned.On November 26, RBI had imposed a penalty on State Bank of India (SBI) for violation of sure guidelines.