New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on State Bank of India for non-compliance with the directions contained in the Reserve Bank of India (Fraud Classification and Reporting by Commercial Banks and Select FIs). 2016′.
The penalty has been imposed in exercise of the 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.
Reading: Rising fuel prices a ‘challenge’ for Indian economy: Finance Minister Nirmala Sitharaman
This action is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the Bank with its customers.
Earlier an inquiry was conducted in the customer account maintained with the Bank by RBI and the examination of the investigation report and all related correspondence thereon, inter alia, disclosed non-compliance with the aforesaid directions to the extent of delay . In reporting the fraud in the said account to the Reserve Bank of India.
Further to the same, a notice was issued to the bank asking it to show cause as to why penalty should not be imposed on it for non-compliance of the said directions, RBI said in a release.
read also: Banks will be closed for 6 days next week. check here
After considering the bank’s reply to the notices and oral submissions given by the bank in the personal hearing, RBI came to the conclusion that the allegation of non-compliance with the above directions was substantiated and warranted imposition of monetary penalty to the extent of non-compliance . – Compliance with the above instructions.
.