Union Bank of India on Wednesday said the Reserve Bank of India (RBI) has imposed a penalty of Rs. 1 crore on it for delay in exchange of information regarding the conduct of the borrower's account with other lenders.
“The penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949. The amount of the penalty is not material considering the size of the Bank,” the public sector bank said in a stock exchange notice.
The Bank said it has taken necessary preventive measures and has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur.