The Reserve Bank of India has imposed a fine of Rs 1.72 crore on the country's largest government bank, i.e., State Bank of India. This fine imposed by RBI on SBI has been imposed for deficiencies in regulatory compliance. Let us tell you that earlier, RBI had given a show cause notice to SBI, and not being satisfied with its reply, the Reserve Bank of India has imposed such a huge fine on State Bank of India.
What is the reason for imposing a fine on SBI?
According to the Reserve Bank of India, SBI did not fully comply with the instructions like 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. After this, the Reserve Bank of India gave a show cause notice to SBI and, not being satisfied with the reply, a fine of Rs 1.72 crore has been imposed on SBI. However, RBI clarified that this fine does not affect the validity of transactions related to customers or the validity of their contracts with banks.
RBI's emphasis on customer interest and security
The Reserve Bank of India praised this move and said that the strictness on banks is to protect the interests of the customers. This will make the banks more vigilant and responsible. Also, it will ensure that there is no negligence in the service provided to the customer, for this, RBI inspects and monitors from time to time. Along with this, this action sends a message that no matter how big or small the bank is, it is mandatory to follow the regulatory guidelines, and the central bank will not shy away from taking strict action on any negligence.
Jan Small Finance Bank fined Rs 1 crore
RBI said in another statement that Jan Small Finance Bank Limited has been fined Rs 1 crore. This fine has been imposed due to violation of some provisions of the Banking Regulation Act, 1949.
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