The Reserve Bank of India (RBI) has imposed a penalty of ₹95,40,000 on Union Bank of India for failing to comply with certain regulatory directions. The penalty was communicated to the bank on 27th March 2026.
The violations pertain to the bank’s non-compliance with RBI’s directions on limiting the liability of customers in unauthorised electronic banking transactions. Specifically, Union Bank of India did not credit the amount involved in unauthorised electronic transactions to the customers’ accounts within 10 working days from the date of notification by the customers. Additionally, the bank failed to provide a direct link for lodging complaints with a specific option to report unauthorised electronic transactions on the home page of its website.
Further non-compliance was noted in the bank’s adherence to RBI’s directions on income recognition, asset classification, and provisioning related to advances and the automation of these processes.
Union Bank of India has stated that the impact of the penalty on its financial, operational, or other activities is not significant. The bank also mentioned that it has taken necessary preventive measures to avoid the recurrence of such instances in the future.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).