RBI slaps fines on Union Bank of India, RBL Bank for breach of rules

The Reserve Bank of India (RBI) on Friday stated it has imposed financial penalties on Union Bank of India and RBL Bank for the violation of norms.

The RBI has imposed a Rs 1 crore penalty on the Union Bank of India because it didn’t adjust to sure instructions and sanctioned a time period mortgage to a company in lieu of or to substitute budgetary assets envisaged for sure tasks, with out enterprise due diligence on the viability and bankability of the tasks to make sure that income streams from the tasks have been enough to take care of the debt servicing obligations, the assertion defined.

RBL Bank was fined Rs 64 lakh as a result of it didn’t receive an annual declaration in Form B from one of its main shareholders, inside one month of the shut of the three monetary years ending on March 31, 2018, March 31, 2019 and March 31, 2020, and furnish certificates to RBI concerning continuance of the ‘match and correct’ standing of one of its main shareholders, by the top of September of the stated three monetary years, the press assertion stated.

“This motion relies on the deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects,” RBI added.

(With inputs from IANS)