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Union Bank Faces Penalty Rs. 1 Crore for KYC Non-Compliance
August 02, 2017
Finding the government-owned Union Bank guilty of not following the directions on Know Your Customer (KYC) guidelines, the Reserve Bank of India has imposed a fine of Rs. 1 crore on the lender.
A complaint of large withdrawals in some accounts of the Union Bank of India was raised with the RBI, as per which it had made the move.
The central bank said that the action is based on the negligence in compliance maintenance and is not meant to question the validity of any transaction.
While the RBI has checked the documents regarding the complaint and issued a notice to the bank, they have also allowed the lender to show something in their defense as to why the penalty shall not be imposed.
