RBI slaps penalty on SBI, Indian Bank, and Punjab & Sind Bank

26 Sep 2023 , 09:35 AM

The Reserve Bank of India announced on Monday that it has imposed penalties on three state-owned banks, including SBI and Indian Bank, for different regulatory violations.

The State Bank of India has been fined Rs 1.3 crore for failing to comply with the RBI’s directives on ‘Loans and Advances – Statutory and Other Restrictions’ and ‘Guidelines on Management of Intra-Group Transactions and Exposures,’ according to a statement.

According to another announcement, the RBI levied a penalty of Rs 1.62 crore on the Indian Bank for violating specific directions on ‘Loans and Advances – Statutory and Other Restrictions,’ KYC, and ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.

Punjab & Sind Bank was fined Rs 1 crore for failing to comply with certain provisions of the depositor education and awareness fund scheme.

Fedbank Financial Services Limited has also been fined Rs 8.80 lakh by the RBI for failing to comply with certain terms of the NBFC monitoring guidelines.

The RBI, however, emphasized that the penalties imposed on banks and NBFCs are based on regulatory compliance inadequacies and are not meant to rule on the legitimacy of any transaction or arrangement entered into by them with their clients.

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