RBI imposes Rs 1 crore fine on SBI for non-compliance
The Reserve Bank of India (RBI) on Monday said it has imposed a penalty of Rs 1 crore on State Bank of India (SBI) for non-compliance of directions contained in the Reserve Bank of India (Classification of Frauds and Reporting by Commercial). Banks and Selected Financial Institutions) Directions 2016.
“This action is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the bank with its customers,” the Reserve Bank of India (RBI) said in a statement.
The central bank said the monetary penalty has been imposed in exercise of the powers vested in the RBI under the Banking Regulation Act, 1949.
This action is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the Bank with its customers.
After considering the bank’s reply to the notice and the oral submissions made during the personal hearing, he said.
“The RBI has come to the conclusion that the allegation of non-compliance with the above directions of RBI is substantiated and warrants imposition of monetary penalty to the extent of non-compliance with the above directions,” the statement said.
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