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Taken corrective action to comply with KYC norms: Union Bank on RBI penalty

RBI levied penalties of Rs 2 cr and Rs 1 cr on the bank in 2 separate incidents of non-compliances

Press Trust of India  |  New Delhi 

Union, Union Bank of India,
Union Bank of India. Photo: Reuters

Faced with Rs 3 crore penalty related to KYC norms, state-owned today said it has taken corrective action to enhance internal controls to avoid repetition of events that lead to non-compliance.

Reserve Bank of India (RBI) has levied penalties of Rs 2 crore and Rs 1 crore on the bank in two separate incidents of non-compliances.

"The bank has taken necessary preventive measures and has implemented a comprehensive correction action plan, to strengthen internal controls and to ensure that such incidents do not recur," said in a regulatory filing.

The penalties were levied on July 26 and yesterday made that public through a press statement.

A fine of Rs 2 crore has been imposed on the bank as it failed to comply with regulator's directives on Know Your Customer (KYC) regarding the examination of certain accounts with substantial transactions.

Another Rs 1 crore fine relates to a case in which were not followed for huge cash withdrawals in certain accounts maintained with the bank.

Stock of the bank was trading 2.15 per cent down at Rs 154.50 on BSE.

First Published: Tue, August 01 2017. 14:55 IST