Personal Finance

RBI imposes Rs 1 crore penalty on State Bank of India

The Reserve Bank of India on Monday slapped a fine of Rs 1 crore on for failing to comply with fraud classification rules. The regulator said it had conducted a probe in accounts maintained with SBI and had found it deficient in reporting frauds.

“A scrutiny was carried out by the RBI in a customer account maintained with the bank and the examination of the scrutiny report and all related correspondence pertaining to the same, revealed non-compliance with the aforesaid directions to the extent of delay in reporting of fraud in the said account to RBI,” the regulator said in a statement.

It also issued a notice to the lender advising it to show cause why penalty should not be imposed on it for such non-compliance with the said directions.

“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 regulator said.


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