Mumbai. The country’s largest state-run bank SBI (SBI) has suffered a major setback. Actually, the Reserve Bank of India i.e. RBI has imposed a fine of one crore rupees on SBI for violating the rules. RBI has imposed this penalty for lack of regulatory compliance.
RBI said in a statement on Friday that this penalty has been imposed in an order issued on November 16, 2021. According to the central bank, a statutory oversight was carried out on the monitoring assessment of SBI between March 31, 2018 and March 31, 2019, with reference to the financial position.
According to the order, examination of the risk assessment report, inspection report found violation of a provision of the Banking Regulation Act. SBI had pledged shares amounting to more than thirty per cent of the paid-up share capital of the companies in the case of borrower companies.
Show cause notice was issued
After this RBI had issued show cause notice to SBI in this matter. After considering the bank’s reply, it was decided to impose the penalty.
Recently RBI imposed a fine of Rs 1 crore on Paytm Payments Bank
Recently, the central bank imposed a fine of Rs 1 crore on Paytm Payment Bank Limited (PPBL). RBI said in a statement that this penalty is being imposed on Paytm Payments Bank for an offense under section 26 (2) of the Payment and Settlement System Act, 2007 (PSS Act).
