Under the applicable section of the Banking Regulation Act, State Bank of India has been fined Rs 2 crore by the Reserve Bank of India (RBI).
The central bank stated in a statement that the action was taken due to regulatory compliance violations and was not meant to be a judgment on the legality of any agreements or transactions SBI made with its clients.
In order to assess the bank’s supervisory evaluation and financial standing as of March 31, 2022, the RBI carried out a Statutory Inspection.
Among the findings of the examination were that it had pledged shares totaling more than thirty percent of the paid-up share capital of several companies and had neglected to credit the qualifying amount to the Depositor Education and Awareness Fund by the deadline specified by the Banking Regulation Act.
Similarly, the Reserve Bank of India fined Canara Bank Rs 32.30 lakh fine for failing to follow certain directives regarding the ‘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.’ Reserve Bank of India stated that the action against Canara bank was founded on the inadequacies in regulatory compliance and is not meant to rule on the legality of any transaction or agreement the bank got into with its clients.
