Lidea Feed

RBI’s strictness imposed heavy fines on Union Bank and Lendbox, this is the reason

Samira Vishwas May 24, 2025 10:24 PM

RBI Fine: RBI has imposed a fine of ₹63.6 lahks on Union Bank of India and ₹40 lahks on Transaction Technologies (Lendbox) for violating regulatory instructions. This penalty has been imposed only due to flaws in regulatory compliance, not on the validity of transactions with customers.

RBI Fine: The Reserve Bank of India (RBI) has once again shown regulatory strictness and imposed a fine on two financial institutions. RBI informed on Friday that punitive action has been taken against Union Bank of India and Transaction Technologies Private Limited (also known as ‘Lendbox’) for non-compliance of regulatory norms.

Union Bank of India gets a setback

According to RBI, a fine of ₹63.6 lakh has been imposed on Union Bank of India. This fine has been imposed for violation of certain provisions of the Banking Regulation Act, 1949 and non-compliance with the instructions to ‘Agricultural Credit Flow – Collateral Free Agricultural Loans’. The Reserve Bank’s investigation found that Union Bank had ignored the prescribed rules in some cases, which raised questions on transparency and regulatory accountability in the banking process.

A fine of ₹ 40 lakh has been imposed on it

On the other hand, a fine of ₹ 40 lakh has been imposed on Transactory Technologies Private Limited. This company operates under the Lendbox brand and is an NBFC-P2P lending platform. According to RBI, the company did not follow some of the conditions and guidelines to Non-Banking Financial Company (NBFC) – P2P, due to which it was penalized.

What did RBI say?

RBI clarified that this action is based on the deficiencies in the regulatory compliance of these institutions and is not intended to challenge the validity of the customer’s transactions or any agreement made with them. This means that this fine will not have any direct impact on the money of the customers and the services provided to them.

It is clear from this action that RBI is serious about regulatory strictness and is engaged in ensuring that all banks and financial institutions fully follow the prescribed rules and guidelines. This step is being considered important towards transparency in the financial sector and protection of the interests of the customers.