Why did RBI impose penalty of Rs 1 crore on SBI?

RBI impose penalty of Rs 1 crore on SBI: Many of you as banking aspirants must be wondering why did RBI impose penalty on the State Bank of India of Rs 1 crore. We have decodes this for you today. And also you need to be aware of such RBI penalties as questions can be asked about the same in various upcoming banking exams.

So, Why did RBI impose penalty of Rs 1 crore on SBI?

As per RBI’s statement SBI was found to be in violation of the rules which come under the frauds classification and reporting by select financial institutions and commercial banks. The fine is nothing but a result of not following a regulatory compliance.

A review was conducted by RBI in an SBI customer account maintained with them and the investigation revealed the non-compliance on the part of SBI. Although, SBI still has a chance to challenge this penalty claim of RBI as the central bank has given them a notice demanding the plausible explanation on why penalty shouldn’t be imposed. If RBI finds it reasonable the penalty could be revoked.

RBI imposing penalties on Indian banks in not a new trend. Every month or every quarter many banks are found in some compliance issue or other. Other banks like Standard Chartered are fined with Rs 1.95 crore in recent events. As aspirants you should always know the causes of such fines and bans.