The Reserve Bank of India Imposes Rs.1 Crore penalty on the State Bank of India.

The Reserve Bank of India slapped Rs.1 Crore as a fine on the state bank of India as a results of failing to comply with the fraud classification rules.

An investigation on the accounts maintained with SBI by the regulators found it to be deficient in reporting frauds.

“A scrutiny was administered by the RBI during a customer account maintained with the bank and therefore the examination of the scrutiny report and every one related correspondence concerning an equivalent , revealed non-compliance with the aforesaid directions to the extent of delay in reporting of fraud within the said account to RBI,” the regulator said during a statement.

A notice was issued to the lender advising it to show why penalty shouldn’t be assessed on it for similar non-compliance with the said directions.

“Considering the reply of the state bank of india, the oral submissions and notice made by the bank in the personal hearing, RBI made a conclusion that the charge of non-compliance with the foresaid Directions of RBI was warrented and substantiated imposition of monetary penalty”, the regulator said.

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