RBI Imposes Rs 2 Crore Fine On SBI, Rs 32 Lakh On Canara Bank

In the case of SBI, the RBI said that a statutory inspection was conducted about its financial position as of March 31, 2022.

RBI slapped penalties on SBI, Canara Bank, City Union Bank, and Ocean Capital Market for non-compliance & deficiencies in certain regulatory compliance. Canara Bank has been fined with rs. 32 lakh & penalty of ₹2 crore was imposed on State Bank of India.

Reserve Bank of India has imposed a penalty of ₹2 crore on State Bank of India for “contravention of provisions of sub-section (2) of Section 19 of the Banking Regulation Act, 1949 (the BR Act), and sub-section (2) of Section 26A of the BR Act read with the Depositor Education Awareness Fund Scheme, 2014.” Reported Business Today

At the same time Canara Bank has been fined with rs. 32 lakh, by RBI for non-compliance with certain directions on ‘Data Format for Furnishing of Credit Information to Credit Information Companies and other Regulatory Measures’, ‘Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)’ and ‘Resolution Framework – 2.0: Resolution of Covid-19 Related Stress of Individuals and Small Businesses’.

In the case of SBI, the RBI said that a statutory inspection was conducted about its financial position as of March 31, 2022.

During the inspection, it was found that the SBI held shares as pledgee of an amount exceeding thirty per cent of the paid-up share capital of certain companies and it failed to credit the eligible amount to Depositor Education and Awareness Fund within the period prescribed in the BR Act.

“Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of the provisions of the BR Act, as stated therein,” the RBI said.

“After considering the bank’s reply to the notice, oral submissions made during the personal hearing, and additional submissions made by it, RBI came to the conclusion that the aforementioned charge of contravention of certain provisions of the BR Act was substantiated and warranted imposition of monetary penalty,” the bank regulator said.