₹31,000 Crore Shock: Union Bank of India Faces RBI Complaint Over Deposit Spike!

Key Takeaways 
 

• A senior official at Union Bank of India has filed a complaint with the Reserve Bank of India. The complaint alleges that the bank inflated its CASA deposits by ₹31,000 crore at the end of FY26. These deposits then dropped by ₹12,000 crore by April 2.
   
• Union Bank denied the allegations, stating its auditors gave an unmodified audit report and that changes in deposits after year-end are a normal banking process. 

A Surge That Raised Red Flags!

A senior official at Union Bank of India has reportedly written to the RBI. The complaint says the bank’s CASA deposits increased by nearly ₹31,000 crore in just the last few days of FY26. Such a sudden spike, followed by a sharp fall, has raised concerns about transparency.

Deposits reportedly dropped by ₹12,000 crore by April 2. This pattern suggests possible “window dressing,” where funds are temporarily added to improve year-end figures. This could affect investor confidence in the bank’s financial reports if proven.

What does this mean for Indians?

Millions of Indians keep their savings and salary accounts in public sector banks. If deposit numbers are manipulated, it can give a wrong picture of a bank’s financial strength. This may impact how safely people’s money is managed.
 

On the positive side, Union Bank said that its average deposits between April 1 and April 28, 2026, were higher than the Q4 FY26 average. This indicates that the bank’s overall deposit base is growing steadily, which is reassuring for customers.

Experts Weigh In: Is This Practice Common?

Banking experts have raised concerns about year-end window dressing in India. Ashvin Parekh, Managing Partner at Ashvin Parekh Advisory Services, said public sector banks often face pressure to meet targets at quarter and year-end. This can lead to temporary improvements in numbers.

Another banking analyst, Hemindra Hazari, has pointed out that sudden deposit spikes followed by quick withdrawals are warning signs that regulators should examine.

Experts suggest that the RBI should require banks to disclose year-end deposit movements clearly. Better transparency in daily CASA reporting and stricter penalties can help prevent such practices. The complaint also names MD and CEO Asheesh Pandey, raising concerns about leadership oversight.

Conclusion 

The RBI complaint against Union Bank highlights the need for stronger monitoring of year-end financial reporting in India’s banking sector. While the bank has denied any wrongdoing and cited clean audit results, the allegations need a proper and independent investigation. Until then, doubts around the reported numbers may continue.

Frequently Asked Questions 

1. How can someone file a complaint against Union Bank of India for issues like the alleged deposit irregularities?
You can first file a complaint with the bank through its customer care or grievance portal. If not resolved, you can escalate it to the Reserve Bank of India under the Ombudsman Scheme online.

2. Can I approach the RBI Ombudsman if I suspect issues like the reported CASA deposit irregularities at Union Bank of India?
Yes. If the bank does not resolve your complaint within 30 days, you can file a case with the RBI Ombudsman. You can submit it online through the RBI complaint portal with proper details and documents.