Business / RBI imposes ₹1 crore penalty on SBI for non-compliance

Zoom News : Oct 19, 2021, 08:55 AM
New Delhi: Reserve Bank of India (RBI) has penalised the country's largest lender State Bank of India (SBI) for not complying with specific directions, and has imposed a fine of ₹ 1 crore on it.

SBI has been penalised for violating rules related to frauds classification and reporting by commercial banks and select financial institutions, the RBI said in a statement.

The action against SBI is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said.

The central bank conducted a review of SBI in a customer account maintained with it and the examination of the scrutiny report revealed non-compliance with the directions on reporting of fraud in the said account to SBI, the central bank said.

“In furtherance to the same, a notice was issued to the bank advising it to show cause why penalty should not be imposed on it for such non-compliance with the said directions,” the RBI said.