Reserve Bank of India (RBI) has imposed a monetary penalty aggregating Rs 3 crore on Union Bank of India for non-compliance with the regulatory direction on ‘know-your-customer’ (KYC) norms. KYC is a process by which banks obtain information about the identity and address of customers.
This process helps to ensure that banks’ services are not misused. The KYC procedure is to be completed by the banks while opening accounts. Banks are also required to periodically update their customers’ KYC details.
Union Bank of India is one of the largest government-owned banks of India. The Bank offers products and services in three categories - Deposits, Loans and Advances, and Remittances & Collections. Its segments include treasury operations, corporate & wholesale banking, retail banking and other banking operations.
