RBI Slaps Fine On SBI: Reserve Bank has said that this fine has been imposed on SBI for deficiencies in regulatory compliance and it has nothing to do with the transaction or any kind of agreement between the bank and the customers. There will be no impact of RBI’s action on bank users.
The country’s largest government bank SBI has been in the news for some time now and why not, after all the shares of the bank have created a stir. SBI Shares were continuously running fast like a rocket and there was a strong increase in market capitalization. But, now once again State Bank is in the headlines and the reason for this is something else. In fact, the Reserve Bank of India (RBI) has imposed a huge fine of Rs 2 crore on SBI. Let us know about the reason behind this…
RBI shared information
The Reserve Bank of India has imposed a fine of Rs 2 crore on State Bank of India (SBI) and shared its information on Monday. This penalty has been imposed for lack of regulatory compliance. According to Business Today, while sharing information in this regard, RBI has said that SBI has violated some rules of Depositor Awareness Fund Scheme 2014. Due to which penalty action has been taken on the bank.
SBI made a mistake here
It has been told in the report that RBI had come to know that State Bank had taken more than 30 percent paid-up share capital of some companies as a pledge, but its amount was not deposited within the stipulated period under the Banking Regulation Act. Was not deposited in the fund. For this, the central bank had also issued a show-cause notice to SBI. In case of violation of these rules, a fine of Rs 2 crore has been imposed on the bank.
Will this affect customers?
Now the big question is whether this action taken by RBI on the country’s largest government bank SBI will affect its customers also. So let us tell you that the picture in this regard has been made clear by RBI. The Reserve Bank has said that this penalty has been imposed on SBI for deficiencies in regulatory compliance and it has nothing to do with the transaction or any kind of agreement between the bank and the customers. This means that this action of RBI will not have any impact on bank users and they will continue to get all the services smoothly.
Penalty imposed on these two banks also
At present, RBI seems to be in full action mood against the financial institutions violating the rules. Not only SBI, but the central bank has imposed penalty on two more banks. The first name in this is City Union Bank, which is accused of breaking the prudential rules of income recognition related to NPA Accounts and for this a fine of Rs 66 lakh has been imposed on the bank.
Apart from this, disobeying the RBI guidelines has also proved costly for Canera Bank and a penalty of Rs 32.30 lakh has been imposed on it.
