The Reserve Bank of India (RBI) has imposed a penalty of Rs 63.6 lakh on Union Bank of India for non-compliance with the certain provisions of Banking Regulation Act, 1949 and certain directions on 'Credit Flow to Agriculture -- Collateral free Agricultural Loans'. The penalty is based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.
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.
