New Delhi: State Bank of India (SBI) on Saturday said the Reserve Bank has imposed a penalty of ₹50 lakh on it for non-compliance relating to reporting of frauds.
RBI in exercise of the powers conferred under various sections of the Banking Regulations Act, has slapped penalties on eight commercial banks, including, Punjab National Bank and Bank of Baroda, for a host of violations, including delay on the reporting of fraud in the account of Kingfisher Airlines in case of two lenders.
These lenders in separate regulatory filings said that the penalties have been imposed on them for delay in reporting of frauds.
PNB said the RBI has imposed a penalty of ₹50 lakh on it for delay in reporting of fraud in the account of Kingfisher Airlines.State-run lender Oriental Bank of Commerce said that the RBI has imposed a fine of ₹1.5 crore on it for delay in reporting fraud in the account of Kingfisher Airlines.
United Bank of India and Punjab & Sind Bank said they have been fined 1 crore each by the RBI.
Bank of Baroda and Federal Bank reported a fine of ₹50 lakh each on them for delay in reporting fraud in an account.
Corporation Bank and UCO Bank also reported imposition of fines by the RBI for delay in reporting of frauds.
In other news, Finance Minister Nirmala Sitharaman will meet heads of public as well as major private sector banks on Monday to review flow of credit to important sectors of the economy. In the last few months, there have been signs of revival in public sector banks.India's largest bank, SBI has posted a profit of ₹2,312 crore in the first quarter of the fiscal as against a loss of over ₹4,876 crore in the year-ago period on better asset management.