RBI Imposes Monetary Penalty on SBI & Other Banks

RBI Imposes Monetary Penalty on SBI & Other Banks – The Reserve Bank of India (RBI) has imposed monetary penalty on State Bank of India, Canara Bank, and City Union Bank for rule violations. The central bank imposed Rs 2 crore penalty on State Bank of India, Rs 32.30 lakh on Canara Bank, and Rs 66 lakh on City Union Bank.

RBI Imposes Monetary Penalty on SBI of ₹2 crore for “contravention of provisions of sub-section (2) of Section 19 of the Banking Regulation Act, 1949 (the BR Act), and sub-section (2) of Section 26A of the BR Act read with the Depositor Education Awareness Fund Scheme, 2014.”

The central bank also imposed a fine of ₹32.30 lakh on Canara Bank for non-compliance with certain directions on ‘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’.

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Further, the Canara Bank was penalised as bank failed to rectify the rejected data and upload the same with the Credit Information Companies (CICs) within seven days of receipt of such rejection report from the CICs and restructured certain accounts which were not standard assets as on March 31, 2021 under the extant directions, release added.