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The Reserve Bank of India (RBI) has imposed a fine on the country's largest bank, State Bank of India (SBI), and private sector Jan Small Finance Bank for violating regulatory guidelines. This action has been taken by the banks for deficiencies in regulatory compliance.

SBI fined Rs 1.72 crore

According to RBI, SBI did not fully comply with instructions such as 'statutory restrictions on loans and advances', 'customer protection - limiting the liability of customers in unauthorized electronic banking transactions', and 'discipline in opening current accounts by banks'. A fine of ₹ 1,72,80,000 has been imposed on the State Bank of India for these deficiencies.

The central bank said that this fine was imposed after sending notices to the banks after regulatory inspection and reviewing their responses. However, RBI clarified that this fine does not affect the validity of transactions related to customers or the validity of their contracts with banks.

Jan Small Finance Bank fined Rs 1 crore.

In another statement, RBI said that Jan Small Finance Bank Limited has been fined Rs 1 crore. This fine has been imposed due to violation of certain provisions of the Banking Regulation Act, 1949. However, RBI did not clarify which specific provisions were violated, but this fine has also been imposed after regulatory inspection and review of documents.

RBI's emphasis on protecting the interests of customers
RBI said that its move is towards making banks more vigilant and responsible in their operations. To ensure that there is no negligence in customer services, RBI conducts inspections and monitoring from time to time. The purpose of this action is to improve compliance with the rules by banks. This action sends a message that no matter how big or small the bank is, compliance with regulatory guidelines is mandatory, and the central bank will not shy away from taking strict action on any negligence.

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