The Reserve Bank of India (RBI) has slapped penalties on Union Bank of India, Central Bank of India, Bank of India and Pine Labs for non-compliance with regulatory norms.

Union Bank of India has been fined Rs 95.40 lakh, Central Bank of India Rs 63.60 lakh, Bank of India Rs 58.50 lakh and Pine Labs Rs 3.10 lakh.

In the case of Union Bank of India, the RBI’s supervisory evaluation, based on its financial position as of March 31, 2025, revealed that the bank failed to credit (shadow reverse) amounts related to unauthorised electronic transactions to certain customers’ accounts within 10 working days of notification.

Bank of India was penalised for non-compliance with RBI directions on Priority Sector Lending (PSL) — Targets and Classification, and Interest Rate on Deposits. The bank was found to have levied ad hoc service, inspection, or processing charges in certain priority sector loan accounts with sanctioned amounts up to Rs 25,000. It also failed to pay interest on some term deposit receipts (TDRs) from the date of maturity until repayment.

Central Bank of India faced action for deficiencies in adherence to RBI guidelines on Know Your Customer (KYC) and Financial Inclusion — Access to Banking Services, particularly relating to Basic Savings Bank Deposit Accounts (BSBDA).

Separately, based on a statutory inspection covering the period from July 2024 to May 2025, Pine Labs was found to be non-compliant with RBI directions on Prepaid Payment Instruments (PPIs). The RBI noted that the company issued several full-KYC PPIs without completing proper KYC verification of customers.

The central bank said the penalties were imposed based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transactions or agreements entered into by the entities.