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RBI imposes Rs 1 crore fine on State Bank of India

RBI imposes Rs 1 crore fine on State Bank of India

This is the second time that RBI has slapped monetary fine on SBI.

The fine was levied after taking into account submissions by SBI, RBI said The fine was levied after taking into account submissions by SBI, RBI said

The Reserve Bank of India on Friday imposed a monetary penalty of Rs 1 crore on State Bank of India for certain irregularities. 


 "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 central bank said in a statement. 

This is the second time that RBI has slapped monetary fine on SBI. Last month, RBI imposed a penalty of Rs 1 crore on the bank for not complying with directions issued by the central bank with regard to fraud classification and reporting by commercial banks.

"The Statutory Inspections for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial positions as on March 31, 2018 and March 31, 2019 and the examination of the Risk Assessment Reports, Inspection Report and all related correspondence pertaining to the same, revealed, inter-alia, contravention of sub-section (2) of section 19 of the Act to the extent the bank held shares in borrower companies, as pledgee, of an amount exceeding thirty per cent of paid-up share capital of those companies," RBI further stated.

The fine was levied after taking into account submissions by SBI, RBI said.