2024-02-29 03:00:39
Mumbai: The largest bank of the country is SBI (State Bank of India). Banking sector regulator RBI (Reserve Bank of India) has imposed a fine of crores on SBI i.e. State Bank of India. This penalty has been imposed for violation of banking rules and instructions of the Reserve Bank. The Reserve Bank itself has made this announcement.
What has the Reserve Bank said
The Reserve Bank of India (RBI) on Monday announced that it has imposed separate penalties on State Bank of India (SBI) and Canara Bank for violation of banking rules and RBI directions. In an order issued by the RBI, a fine of Rs 2 crore was imposed on State Bank of India for violation of the provisions of the Banking Regulation Act and non-compliance with the Depositor Education Awareness Fund Scheme.
On which fronts SBI failed
RBI said examination of the risk assessment report/inspection report revealed that, inter alia, SBI pledged shares amounting to more than 30 per cent of the paid-up share capital of some companies. The depositor also failed to credit the eligible amount to the Education and Awareness Fund within the period prescribed in the BR Act.
Canara Bank also fined
Similarly, RBI has imposed a penalty of Rs 32.30 lakh on Canara Bank for non-compliance with certain directions issued by the central bank on ‘Data Format for Furnishing Credit Information to Credit Information Companies and other regulatory measures’. RBI said that examination of the risk assessment report/inspection report and all related correspondence in the case of Canara Bank revealed that, inter alia, the bank was required to correct the rejected data within seven days of receipt of such rejection report from the CIC and Has failed to upload it to the credit information companies. Apart from this, it also failed in restructuring the loan accounts which were at risk as on March 31, 2021.
Penalty due to lack of compliance
However, the IBI clarified that the action is based on lapses in the regulatory compliance of both the banks and is not intended to adjudicate on the validity of any transaction or agreement entered into by the bank with its customers.