RBI Slaps ₹63.6 Lakh Fine on Union Bank of India for Regulatory Violations
New Delhi, 25 May 2025: The Reserve Bank of India (RBI) has imposed monetary fines on Union Bank of India and Transactree Technologies Pvt Ltd, the operator behind P2P lending platform Lendbox, for serious lapses in regulatory compliance.
According to NewsonAIR, Union Bank was fined 63.60 lakh rupees for failing to transfer eligible funds to the Depositor Education and Awareness Fund and collecting collateral on small agricultural loans, which violates RBI guidelines.
On the other hand, Transactree Technologies Pvt Ltd was penalized 40 lakh rupees for non-compliance with P2P lending norms, including improper fund routing and a lack of borrower transparency.
Reserve Bank of India emphasized that the penalties are for regulatory lapses and do not reflect on the validity of the institutions’ agreements with customers.
Also Read, Big news for bank customers! Bank Name Changed: RBI has changed the name of this bank
The RBI clarified that these penalties are strictly related to regulatory violations and do not impact customer transactions or agreements. RBI actions show its commitment to maintaining trust and safety for all the customers in India’s banking ecosystem.
