RBI Penalties: Union Bank of India and Lendbox Fined
Why in the news
The RBI penalised a public sector bank and a P2P platform for rule breaches.
Penalties
| Entity | Fine | Law or direction |
|---|---|---|
| Union Bank of India | ₹63.6 lakh | Banking Regulation Act, 1949; farm-credit direction on collateral-free loans |
| Transactree Technologies (Lendbox) | ₹40 lakh | P2P Lending Platform Directions, 2017; RBI Act, 1934 |
Lendbox lapses
- Funds moved via a co-lending escrow account.
- Credit assessments and borrower risk profiles not disclosed to lenders.
- Loans disbursed without specific lender approval.
Exam angle
- Imposed by: RBI.
- Lendbox type: P2P lending platform.