RBI slaps Rs.2 crore penalty on SBI for ‘deficiencies in regulatory compliance’

The Reserve Bank of India (RBI) has slapped a penalty of Rs 2 crore on the State Bank of India (SBI) over “deficiencies in regulatory compliance”, an official statement said on March 16.

The monetary penalty was imposed on the SBI through an order issued by the central bank on March 15, 2021.

The SBI came under statutory inspection in reference to its financial position as on March 31, 2017 and March 31, 2018 and the Risk Assessment Reports (RARs) pertaining thereto, the central bank said.

“After considering the bank’s replies to the notice, oral submissions made in the personal hearing and examination of additional submissions made by it, RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty,” the RBI said.

The SBI was penalised for “contravention of provisions of section 10 (1) (b) (ii) of the Banking Regulation Act, 1949 (the Act) and specific directions of RBI issued to the bank on payment of remuneration to employees in the form of commission”, the statement added.

“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 Act,” it further said.