The Reserve Bank of India (RBI) on Monday said it has imposed a penalty of Rs one crore on the State Bank of India (SBI) for non-compliance with the directions contained in ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016.
"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," the Reserve Bank of India (RBI) said in a statement.
The monetary penalty has been imposed in exercise of powers vested in RBI under the Banking Regulation Act, 1949, the central bank said.
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, it added.
After considering the bank's reply to the notice and oral submissions made during the personal hearing, it said.
The RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with the aforesaid directions, the statement said.
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