1 min read.Updated: 18 Oct 2021, 07:51 PM ISTLivemint
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, said RBI
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The Reserve Bank of India (RBI) on Monday imposed a penalty of ₹1 crore on State Bank of India (SBI) for deficiencies in regulatory compliance. “This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47A (1) (c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949," the RBI said in a statement.
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 statement said.
It further said that a scrutiny was carried out in a customer account maintained with the bank and the examination of the scrutiny report and all related correspondence pertaining to the same revealed non-compliance with the directions to the extent of delay in reporting of fraud to the RBI.
A notice was issued to the bank advising it to show cause why penalty should not be imposed on it for such non-compliance with the said directions. After considering the bank’s reply to the notice and oral submissions made by the bank in the personal hearing, the RBI came to the conclusion that the charge of noncompliance was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with the aforesaid directions, the statement said.