Taken corrective action to comply with KYC: Union Bank

New Delhi: Faced with Rs 3 crore RBI penalty related to KYC norms, state-owned Union Bank on Tuesday said it has taken corrective action to enhance internal controls to avoid repetition of events that lead to non-compliance.

Reserve Bank of India (RBI) has levied penalties of Rs 2 crore and Rs 1 crore on the bank in two separate incidents of non-compliances.

"The bank has taken necessary preventive measures and has implemented a comprehensive correction action plan, to strengthen internal controls and to ensure that such incidents do not recur," Union Bank said in a regulatory filing.

The penalties were levied on July 26 and RBI on Monday made that public through a press statement.

A fine of Rs 2 crore has been imposed on the bank as it failed to comply with regulator's directives on Know Your Customer (KYC) regarding examination of certain accounts with substantial transactions.

Another Rs 1 crore fine relates to a case in which KYC norms were not followed for huge cash withdrawals in certain accounts maintained with the bank.

Stock of the bank was trading 2.15 percent down at Rs 154.50 on BSE.