RBI fined SBI 1 crore

New Delhi: The strictness of the Reserve Bank of India (RBI) on banks continues. Often RBI imposes fines on banks for violation of rules. In this episode, now State Bank of India (SBI) has been fined Rs 1 crore. RBI has imposed this penalty for lack of regulatory compliance. According to the central bank, a statutory oversight was carried out on the monitoring assessment of SBI between March 31, 2018 and March 31, 2019, with reference to the financial position.

The examination of the risk assessment report, as per the order, found the inspection report to be in contravention of a provision of the Banking Regulation Act. SBI had pledged shares amounting to more than thirty per cent of the paid-up share capital of the companies in the case of borrower companies. After this RBI had issued show cause notice to SBI in this matter. The decision to impose penalty was taken after considering the bank’s reply.

Penalty was also imposed in October: RBI had imposed a fine of Rs 1 crore on SBI in October also. The penalty was imposed due to non-compliance of instructions issued by the central bank by commercial banks regarding classification and reporting of frauds.