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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹7 crore on State Bank of India.
The penalty is for non-compliance with the directions issued by the RBI on Income Recognition and Asset Classification (IRAC) norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC) and fraud risk management and classification and reporting of frauds, the central bank said in a statement.
“This penalty has been imposed in exercise of powers vested in RBI under.... the Banking Regulation Act, 1949. This action is based on 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.
“After considering the bank’s reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty,” the statement said.
Among the disclosure of penalties made by SBI in its annual report for FY2019, the bank said RBI imposed a penalty of ₹1 crore on it for not monitoring the end-use of funds in respect of one of its borrowers.
Further, RBI imposed a penalty of ₹1 crore on the bank for non-compliance with the directions issued by the regulator on SWIFT-related operational controls.
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