The Reserve Bank of India has imposed a Rs 7-crore penalty on State Bank of India for not complying with, among other things, the central bank's norms on reporting frauds and income recognition.
After conducting a statutory inspection of the country's largest lender based on its financial position as on March 31, 2017, RBI found that SBI was non-compliant with several central bank norms, said an RBI media release. The SBI also informed stock exchanges about the fine.
According to the central bank, SBI violated norms on income recognition and asset classification, conduct for opening and operating current accounts, procedures regarding reporting data into the Central Repository of Information on Large Credits, fraud risk management as well as norms related to the classification and reporting of frauds. The RBI also found SBI in violation of directions related to sharing information about customers with other banks.
After setting up an internal enforcement department to oversee regulatory compliance and violations in April 2017, RBI has become far more vigilant in penalising banks and other regulated entities. On June 18, it imposed Rs 1-crore fine on HDFC Bank Ltd. for not complying know-your-customer and anti-money laundering rules.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
