RBI imposed fine on SBI and Union Bank of India for violating certain regulatory guidelines

The Reserve Bank of India (RBI) imposed fine on State Bank of India (SBI) and Union Bank of India for violating certain regulatory guidelines.

Fine on SBI:
RBI fined Rs.7 crore as SBI did not comply with the directions issued by the RBI on Income Recognition and Asset Classification (IRAC) norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC), and fraud risk management and classification and reporting of frauds.
The central Bank held the reference to its financial position as on March 31, 2017 which revealed that the lender had violated those norms.

Fine on Union Bank of India:
RBI also fined Rs.10 lakh on Union Bank for non-compliance with the directions on the cybersecurity framework in banks issued by the RBI.
The RBI accused Union Bank of India that it failed to carry out the cybersecurity framework in 2016. RBI’s examination revealed reports of generation of seven fraudulent messages worth $171 million through the SWIFT system of the bank.

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