RBI Fines State Bank Of India, Canara Bank For Regulatory Violations

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RBI Fines State Bank Of India, Canara Bank For Regulatory Violations

The Reserve Bank of India (RBI) imposed a monetary penalty on State Bank of India and Canara Bank for regulatory violations, the central bank said in a press statement on Monday. 

The State Bank of India was fined Rs 2 crore for violations related to depositor education awareness funds and shareholding in a company exceeding 30% of the paid-up share capital of that company.

“This action is based on the 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,” said the central bank.

The Canara Bank was fined Rs 32.30 lakh for failing to rectify the rejected data and upload the same with the credit information companies within seven days of receiving such a rejection report from the CICs.

The RBI also fined City Union Bank Rs 66 lakh for violations related to the divergence of non-performing assets. 

“There was significant divergence between the non-performing assets, as reported by them and as assessed during the inspection. It did not put in place a system of periodic review of risk categorisation of accounts of its customers,” the RBI said. 

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