RBI imposes penalty on SBI, Indian Bank, Punjab & Sind Bank for norm violations

The Reserve Bank of India (RBI) said it has taken action against several state-owned banks, including the State Bank of India (SBI), Indian Bank, and Punjab & Sind Bank, for violating various regulatory norms.

How much have the banks been penalised?  

The State Bank of India has been fined with a penalty of Rs 1.3 crore for failing to comply with specific directives issued by the RBI concerning 'Loans and Advances: Statutory and Other Restrictions' and 'Guidelines on Management of Intra-Group Transactions and Exposures', according to an RBI statement.

Indian Bank, on the other hand, has been penalised Rs 1.62 crore for contravening certain directions related to 'Loans and Advances: Statutory and Other Restrictions', Know Your Customer (KYC) Guidelines, and 'Reserve Bank of India (Interest Rate on Deposits) Directions, 2016'.

Punjab & Sind Bank has incurred a monetary penalty of Rs 1 crore for non-compliance with specific provisions of the depositor education and awareness fund scheme, as per the RBI's statement.

Additionally, Fedbank Financial Services Limited has been subjected to a penalty of Rs 8.80 lakh for its failure to adhere to certain provisions outlined in the directions regarding monitoring fraud in non-banking financial companies (NBFCs).

The RBI, in its clarification, has emphasised that these penalties have been imposed on the banks and the NBFC due to deficiencies in regulatory compliance and should not be interpreted as judgements on the validity of any transactions or agreements they have entered into with their customers.

(With PTI inputs)