The Reserve Bank of India (RBI) has imposed a penalty of Rs 7 crore on State Bank of India for non-compliance with its directions.
RBI has slapped the fine as the country's largest lender failed to comply with the following directions-
(i) Income Recognition and Asset Classification (IRAC) norms
(ii) code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC), and
(iii) fraud risk management and classification and reporting of frauds.
This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47A (1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949 (the Act), read a statement by the central bank.
This action 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, further read the statement.