GUWAHATI: The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2 crore on the State Bank of India (SBI) under the relevant section of the Banking Regulation Act.
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This move, outlined in an official release, is attributed to deficiencies in regulatory compliance. The RBI clarified that the penalty is not a judgment on the validity of any transactions or agreements entered into by SBI with its customers.
The regulatory action follows a Statutory Inspection for Supervisory Evaluation of SBI, conducted by the RBI concerning its financial position as of March 31, 2022. The examination identified deficiencies, including SBI holding shares as a pledgee, exceeding 30 percent of the paid-up share capital of certain companies. Additionally, the bank failed to credit the eligible amount to the Depositor Education and Awareness Fund within the stipulated period outlined in the Banking Regulation Act.
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In a separate enforcement measure, the RBI imposed a monetary penalty of Rs ₹32.30 lakh on Canara Bank for non-compliance with specific directions related to 'Data Format for Furnishing of Credit Information to Credit Information Companies and other Regulatory Measures,' 'Resolution Framework 2.0 - Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs),' and 'Resolution Framework - 2.0: Resolution of Covid-19 Related Stress of Individuals and Small Businesses.'
Similar to the action against SBI, the penalty on Canara Bank is centered on deficiencies in regulatory compliance, with the RBI emphasising that it does not question the validity of any transactions or agreements between the bank and its customers.
Furthermore, Ocean Capital Market Limited, based in Rourkela, Odisha, faces a monetary penalty of ₹16 lakh from the RBI. The penalty is a consequence of non-compliance with certain provisions of the "Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016," and specific directions issued by the RBI to the company, particularly on the submission of returns on the XBRL platform.