The Reserve Bank of India (RBI) on Monday slapped a hefty fine of Rs 2 crore on the State Bank of India (SBI) for deficiencies in certain regulatory compliance. It also imposed Rs 32 lakh fine on Canara Bank. In the case of SBI, the central bank said that a statutory inspection was conducted about its financial position as of March 31, 2022.
During the inspection, it was found that the SBI held shares as pledgee of an amount exceeding thirty per cent of the paid-up share capital of certain companies and it failed to credit the eligible amount to Depositor Education and Awareness Fund within the period prescribed in the BR Act.
"Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of the provisions of the BR Act, as stated therein," the RBI said.
"After considering the bank's reply to the notice, oral submissions made during the personal hearing, and additional submissions made by it, RBI came to the conclusion that the aforementioned charge of contravention of certain provisions of the BR Act was substantiated and warranted imposition of monetary penalty," the bank regulator said.
For Canara Bank, RBI said the lender 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 it restructured certain accounts that were not standard assets as on March 31, 2021 under the extant directions.