New Delhi [India], Oct 3 (ANI): Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on United Overseas Bank Limited (UOB) for its failure to comply with the provisions of Section 10B of the Banking Regulation Act, 1949.
The penalty has been imposed through an order issued on October 1 in exercise of powers vested in RBI under the provisions of section 47A(1)(c) read with section 46(4)(i) of the Act, taking into account the failure of the bank to adhere to the aforesaid provisions of the Act.
"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank," an official statement said on Thursday.
Section 10B of the Banking Regulation Act makes it abundantly clear that the management of the affairs of a private bank is "entrusted" to a managing director, who exercises his powers, "subject to the superintendence, control and direction of the board of directors".
UOB, a leading bank in Asia, provides a wide range of financial services including personal financial services, wealth management, private banking, commercial and corporate banking, transaction banking, investment banking, corporate finance, capital market activities, treasury services, futures broking, asset management, venture capital management and insurance.
The bank has a global network of more than 500 branches and offices in 19 countries and territories in Asia Pacific, Europe and North America.
In Asia, it operates through it's head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia and Thailand, as well as branches and offices. (ANI)