Union Bank, RBL Bank and Bajaj Finance penalized by RBI over Non-Compliance

The Reserve Bank of India (RBI) imposed penalties on Union Bank of India, RBL Bank, and Bajaj Finance Ltd for non-compliance with regulatory norms on Friday.

A statement was given by the Reserve Bank of India (RBI) that a Rs. 1 crore penalty has been imposed on the state-run Union Bank of India for contravention of its directions related to ‘Loans and Advances – Statutory and Other Restrictions’

In another release, a penalty of Rs 8.5 lakh has been imposed on Bajaj Finance Ltd for non-compliance with the ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016′.

A monetary penalty of Rs 64 lakh has been charged to private sector RBL Bank Ltd for non-compliance with certain directions of the RBI (Earlier approval for acquisition of shares or voting rights in private sector banks) Directions, 2015, the central bank said.

In the above cases, the RBI added that the basis of the penalties depends on the deficiencies in regulatory compliance and is not intended to be pronounced upon the validity of any transaction or agreement entered into by the entities with their respective customers.

Furthermore, the central bank added that it has approved the scheme of amalgamation of  The Suvikas People’s Co-operative Bank Ltd (Ahmedabad), with The Kalupur Commercial Co-operative Bank Ltd (Ahmedabad).

The scheme came into force on October 16. The branches of  The Suvikas People’s Co-operative Bank Ltd function as branches of Kalupur Commercial Co-operative Bank from October 16.