RBI Fines SBI Rs 1.72 Cr for Regulatory Non-Compliance

The Reserve Bank of India (RBI) has penalized the State Bank of India with Rs 1.72 crore for non-compliance with certain directions.

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As per a statement from the RBI, the state-owned lender failed to comply with certain directions issued by the RBI on 'Loans and Advances- Statutory and Other Restrictions', 'Customer Protection - Limiting Liability of Customers in Unauthorized Electronic Banking Transactions', and 'Opening of Current Accounts by Banks - Need for Discipline'.

This penalty has been imposed under the Banking Regulation Act, 1949.

A Statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by the RBI with reference to its financial position as on March 31, 2023.

Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank by the RBI, advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.