RBI imposes a ₹63.6 lakh fine on Union Bank and ₹40 lakh on Lendbox for violations of regulations.

The Reserve Bank of India (RBI) announced on Friday that it has placed penalties on Union Bank of India and Transactree Technologies due to their failure to adhere to specific regulatory standards.

The Reserve Bank of India announced that a fine of Rs 63.6 lakh has been levied on Union Bank of India for failing to adhere to specific sections of the Banking Regulation Act, 1949, as well as certain guidelines regarding ‘Credit Flow to Agriculture — Collateral free Agricultural Loans.’

In a separate announcement, it mentioned that a fine of Rs 40 lakh has been levied on Transactree Technologies Pvt Ltd (known as ‘Lendbox’) due to non-compliance with specific provisions of the ‘Non-Banking Financial Company — Peer to Peer Lending Platform (Reserve Bank) Directions, 2017’.

In both instances, the RBI stated that the penalties stem from shortcomings in regulatory adherence and are not meant to comment on the legitimacy of any transaction or agreement made by the entities with their clients.