RBI Slaps ₹1.66 Lakh Fine on Union Bank of India Over Currency Handling Lapses
Mumbai—The Reserve Bank of India (RBI) has imposed a penalty of Rs.1.66 lakh on Union Bank of India due to discrepancies in soiled note remittances and ATM cash management. A few days ago RBI imposes penalties on SBI, Jana Small Finance Bank for deficiencies in compliance of norms.
The penalty was levied after the RBI observed irregularities in the bank’s handling of currency notes and ATM operation practices. Despite the fine, Union Bank of India clarified that the penalty does not significantly impact its financial performance or operations.
The bank has assured investors that it has implemented preventive measures to avoid similar issues in the future. Meanwhile, Union Bank of India recently reported a 50.6% year-over-year surge in net profit, reaching ₹4,985 crore for the quarter ended March 2025. Net interest income rose slightly to ₹9,514 crore, while the bank’s gross non-performing assets (NPA) improved to 3.6% from 3.85% in the previous quarter.
Additionally, the bank’s board has recommended a dividend of ₹4.75 per equity share, subject to shareholder approval at the upcoming Annual General Meeting.
