The Reserve Bank of India today said that it has levied a Rs 40 lakh penalty on State Bank of India for not complying with guidelines on managing counterfeit currency.
Currency chest inspections at two SBI branches had revealed that the bank was in violation of the instructions issued on detection and impounding of counterfeit notes, according to a statement on the regulator's website. Further to the inspection, the regulator sent a show cause notice to SBI on Jan. 5, seeking clarification.
“After considering the bank's reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions/ guidelines were substantiated and warranted imposition of monetary penalty,” the RBI said in its statement.
The central bank said that the action against SBI is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
Also Read: RBI Imposes Penalties On Axis Bank And IOB
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