RBI slaps Rs40 lakh penalty on SBI for flouting fake note norms
RBI found deficiencies on SBI’s part in regulatory compliance with fake note norms after an inspection of currency chests of its two branches
Mumbai: Reserve Bank of India (RBI) on 1 March imposed a Rs40 lakh penalty on State Bank of India (SBI) for not following the central bank’s rules on detection and impounding of counterfeit currency notes, RBI said in a release on Wednesday.
“The currency chest inspection of two branches of the bank revealed, inter alia, violation of the instructions issued by RBI on detection and impounding of counterfeit notes,” it said.
RBI issued a show-cause notice dated 5 January, 2018 in which it asked SBI to explain why a penalty should not be imposed. After hearing SBI’s submission, RBI concluded that the charges of non-compliance were substantiated and warranted imposition of penalty.
The stock of SBI on Wednesday dropped 3.84% to close at Rs246.65 on the BSE.