The Reserve Bank of India (RBI) has imposed a penalty on the country’s largest public sector bank State Bank of India (SBI) for not complying with regulatory instructions. Let us know in detail.
New Delhi: The Reserve Bank of India (RBI) has imposed a fine on the country’s largest public sector bank SBI. The RBI has imposed a hefty penalty of Rs 1 crore on the country’s largest lender State Bank of India (SBI) for not following the regulatory directions.
RBI has said in this matter that this penalty has been taken on behalf of SBI for not complying with the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select Financial Institutions) Directions 2016.
What will be the impact on SBI customers?
RBI said on this matter that SBI had violated the rules for classification and reporting of frauds with customers on behalf of commercial banks and selected financial institutions.
RBI said that it has imposed this penalty in exercise of the powers given under the provisions of Section-47A (1) (c) of the Banking Regulation Act, 1949. RBI also said that this action is based on deficiencies in regulatory compliance. But let us tell you that the validity of any transaction or agreement made by the bank with the customers will not be affected.
RBI did a customer account check
Actually, RBI investigated the account of a customer maintained by SBI. In this investigation, it was found that SBI has delayed the compliance of RBI instructions. RBI did all the investigation of the customer’s account as well as the correspondence and other things related to it.
In this, it was found that the information about fraud in the account from SBI was given to RBI late. Not only this, after this a show cause notice was issued to the bank in this case asking why penalty should not be imposed on it for not following the instructions? After considering the reply given by SBI on this, the RBI decided to impose a fine of Rs 1 crore on the country’s largest lender SBI.
