Union Bank of India, Bank of India, and Central Bank of India are three public sector banks that have been penalized by the Reserve Bank of India (RBI).
Union Bank of India was penalized by the RBI Union Bank of India has been fined ₹95.40 lakh by the Reserve Bank of India (RBI). The bank was penalized for violating RBI regulations pertaining to automating asset classification procedures and minimizing client liability in unauthorized electronic transactions.
RBI discovered the following problems after reading the bank's response and hearing its justification:
Following reports of unauthorized activities, the bank failed to credit funds to clients' accounts within ten working days. Customers could not report unauthorized transactions to the bank around-the-clock.
For certain KCC accounts, the bank employed manual intervention in system-based asset classification.
Bank of India was fined ₹58.50 lakh by the RBI for failing to comply with regulations pertaining to Priority Sector Lending and interest on deposits.
Following examination and analysis, RBI discovered the following problems:
For minor priority sector loans up to ₹25,000, the bank imposed additional fees (such as processing and inspection expenses). Certain term deposits were not paid interest by the bank until they were repaid after they matured.
The Central Bank of India was fined ₹63.60 lakh by the RBI for failing to comply with KYC and basic savings account regulations. Following examination, RBI discovered:
The bank did not upload KYC details of some customers to the Central KYC Registry on time.
The bank opened multiple basic savings accounts for customers who already had such accounts.
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