Indian Regulator Fines UOB for Compliance Deficiencies
The Reserve Bank of India has fined United Overseas Bank for failure to comply with a regulation regarding management oversight.
RBI imposed a Rs 1 crore ($141,000) fine on UOB for not adhering to one of the provisions that requires the affairs of a privately owned bank to be «entrusted» to a managing director who exercises his powers, «subject to the superintendence, control and direction of the board of directors».
«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,» according to an official statement from RBI.
UOB open its first India-based branch in late 2009 in Mumbai with a focus on retail and wholesale banking alongside treasury and trade finance solutions.
