Yahoo Finance RBI imposes penalties on State Bank of India and two other state-owned banks for regulatory violations
The Reserve Bank of India (RBI) has imposed penalties on three state-owned banks, including the State Bank of India (SBI), Indian Bank, and Punjab&Sind Bank, for violation of various regulatory norms. The announcement was made on Monday.
The largest penalty was levied on the SBI, amounting to ₹1.30 Crore for non-compliance with certain RBI directions on 'Loans and Advances – Statutory and Other Restrictions' and 'Guidelines on Management of Intra-Group Transactions and Exposures'. This action falls under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
Indian Bank faced a penalty of ₹1.62 Crore for contravention of certain directions on 'Loans and Advances Statutory and Other Restrictions', KYC, and 'Reserve Bank of India (Interest Rate on Deposits) Directions, 2016'. Meanwhile, Punjab&Sind Bank was slapped with a ₹1 Crore penalty for non-compliance with certain provisions of the depositor education and awareness fund scheme.
In addition to the penalties imposed on these banks, the RBI also fined Fedbank Financial Services Limited ₹8.80 lakh for non-compliance with certain provisions of the directions on monitoring fraud in Non-Banking Financial Companies (NBFCs).
According to the RBI, these penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by these financial institutions with their customers.
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