RBI imposes Rs 1 cr penalty on SBI

The Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs 1 crore on the State Bank of India.

The penalty was imposed on the lender for non-compliance with the directions contained in ‘Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions 2016’.

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, the RBI said in a statement.

A scrutiny was carried out by the RBI in a customer account maintained with the bank and the examination of the scrutiny report and all related correspondence pertaining to the same, revealed, inter alia, non-compliance with the aforesaid directions to the extent of delay in reporting of fraud in the said account to the RBI.

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