Union Bank of India, a leading public sector lender, is currently facing public and regulatory scrutiny over its ₹7.25 crore purchase of nearly two lakh books—a move that has sparked widespread questions about transparency and expenditure practices.
What Sparked the Controversy?
The issue came to light after it was revealed that the bank made this hefty purchase before the book was even published. The stated intent was to distribute these books to customers, local schools, colleges, and libraries. However, the unusually high volume and timing of the purchase have triggered criticism.
Union Bank’s bulk order of nearly 2 lakh copies at such a large expense has raised eyebrows across industry and regulatory circles.
Questions on Intent and Accountability
While banks do engage in outreach and educational activities, this move has brought attention to how public funds are utilized by government-owned institutions. Critics are questioning whether the purchase served a meaningful purpose or if it reflected a lack of due diligence and financial prudence.
The concern isn’t just the cost—but also the relevance, timing, and necessity of the book order.
According to internal sources, the procurement was justified as part of a broader financial literacy initiative. However, observers argue that the execution lacked transparency, and the impact or usage of these books remains unclear.
Wider Implications
This controversy could prompt stricter auditing and governance measures across public sector banks. As custodians of public money, PSUs are often expected to adhere to high standards of accountability, especially in non-core expenditures like branding or CSR outreach.
This incident puts a spotlight on the need for tighter checks on discretionary spending by public institutions.
The bank has not yet issued a detailed public response to clarify the rationale behind the move or how the books have been distributed.
