Rs 1 Crore Penalty Imposed On SBI

The Reserve Bank of India, on Monday, slapped a penalty of Rs 1 crore on the State Bank of India. The penalty was imposed owing to the bank’s failure to comply with fraud-reporting norms.

A probe was conducted by the RBI and after examining the scrutiny report, the bank found that SBI had underreported the number of frauds. It was in non-compliance with the RBI’s directions of reporting fraud.  

In response to the penalty, SBI has been asked to show cause why the penalty should not be imposed. “After considering the bank’s reply to the notice and oral submissions made by the bank in the personal hearing, RBI came to the conclusion that the charge of non- compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” the RBI said.