RBI Fines Union Bank, Transactree for Regulatory Violations

Mumbai, May 23 (PTI) The Reserve Bank of India (RBI) on Friday said it has imposed penalties on Union Bank of India and Transactree Technologies for non-compliance with certain regulatory norms.

A penalty of Rs 63.6 lakh has been imposed 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 RBI said.

In another statement, it said a penalty of Rs 40 lakh has been imposed on Transactree Technologies Pvt Ltd (also referred to as 'Lendbox') for non-compliance with certain provisions of the 'Non-Banking Financial Company -- Peer to Peer Lending Platform (Reserve Bank) Directions, 2017'.

In both cases, the RBI said the penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with its customers.