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HomeEconomyRBI slaps Rs 14.5 crore penalty on SBI, 13 other banks

RBI slaps Rs 14.5 crore penalty on SBI, 13 other banks

This is probably the highest number of banks receiving RBI monetary penalties on a single day for various rule violations

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The Reserve Bank of India (RBI) on 7 July imposed a monetary on fourteen banks, including the State Bank of India (SBI) and Bank of Baroda (BOB) for of various rules.

As per an official release, the violence includes non-compliance with certain provisions of directions issued by RBI on ‘Lending to Non-Banking Financial Companies (NBFCs)’, ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’, ‘Loans and Advances – Statutory and Other Restrictions’, ‘Creation of a Central Repository of Large Common Exposures across Banks’ read with the contents of Circular on ‘Reporting to Central Repository of Information on Large Credits (CRILC)’, ‘Operating Guidelines for Small Finance Banks’ and for contraventions of provisions of Section 19(2) and Section 20 (1) of Banking Act, 1949.

RBI has imposed a of one crore each on Bandhan Bank Ltd, Bank of Maharashtra, Central Bank of India, Credit Suisse AG, Indian Bank, IndusInd Bank Ltd, Bank Ltd, Karur Vysya Bank Ltd, Punjab and Sind Bank, South Indian Bank Ltd, The and Kashmir Bank Ltd, Utkarsh Small Finance Bank Ltd, along with a of two crores on BOB and fifty lakhs on SBI.

The penalties have been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1), of the Banking Act, 1949, as applicable.

“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any or agreement entered into by the banks with their customers,” RBI said in the release.

In total, RBI has slapped a total of Rs 14.50 crore, of which Bank of Baroda is paying the highest amount at Rs 2 crore while the State Bank of India is fined with the lowest amount at Rs 50 lakhs. 

The central bank has imposed penalties ranging from Rs 50 lakh to Rs 2 crore on these banks for failing to comply with regulatory provisions.

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