Reserve Bank of India (RBI) has penalized the country’s largest lender State Bank of India (SBI) for not complying with specific directions, and has imposed a fine of Rs 1 crore on it.
RBI in its recent notification has said it has imposed a penalty of Rs 1 crore on SBI for non-compliance with the directions contained in ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016. The monetary penalty has been imposed in exercise of powers vested in RBI under the Banking Regulation Act, 1949, the Central Bank further added.
Further, RBI said in a statement that “This action 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”.
However, in previous month on 18th October 2021, SBI has been slapped a fine of Rs 1 crore for the same reason.