The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1,72,80,000 (Rupees One Crore Seventy Two Lakh Eighty Thousand only) on State Bank of India (SBI) for non-compliance with certain directions issued by RBI on Loans and Advances - Statutory and Other Restrictions, Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions and Opening of Current Accounts by Banks - Need for Discipline.
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| RBI Imposes Rs 1.72 Crore Penalty on State Bank of India (SBI) |
RBI Imposes ₹1.72 Crore Penalty on State Bank of India (SBI)
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1,72,80,000 on State Bank of India (SBI) for non-compliance with certain directions issued by RBI on Loans and Advances - Statutory and Other Restrictions, Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions and Opening of Current Accounts by Banks - Need for Discipline.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
RBI Imposes Penalty on SBI: Background
The Statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The bank extended a bridge loan to an entity against amounts receivable from the Central/State Government by way of subsidy/reimbursement;
- The bank failed to (i) credit (shadow reversal) the amount involved in unauthorized electronic transactions to certain customer accounts within 10 working days from the date of notification by the customer and (ii) compensate certain customers within 90 days from the date of receipt of the complaint;
- The bank opened/maintained certain current accounts in contravention of regulatory requirements.
The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
About State Bank of India (SBI)
State Bank of India (SBI) is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai. The rich heritage and legacy of over 200 years, accredits SBI as the most trusted Bank by Indians through generations.
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SBI bank are the largest banking and financial services organization in India, with an asset base of over Rs. 61 trillion. SBI serve over 50 crore customers through our vast network of over 22,500 branches, 63,580 ATMs/ADWMs, 82,900 BC outlets, with an undeterred focus on innovation, and customer centricity, which stems from the core values of the Bank - Service, Transparency, Ethics, Politeness and Sustainability.
Subsidiary of SBI
The State Bank of India (SBI) has successfully diversified businesses through its various subsidiaries i.e SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc.
History of State Bank of India (SBI)
The State Bank of India was founded on 2 June 1806 with the establishment of the Bank of Calcutta in Calcutta. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). It was a unique institution, the first joint-stock bank in British India sponsored by the Bengal government.
The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
An act was accordingly passed in Parliament in May 1955 and the State Bank of India (SBI) was constituted on 1 July 1955.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to SBI Bank for upcoming exams
- Founded: 1 July 1955
- Headquarters: Mumbai, Maharashtra
- Chairman: Challa Sreenivasulu Setty
- Chief Financial Officer (CFO): Kameshwar Rao Kodavanti
- Number of branches: 22,542 branches
- Number of ATMs: 63,580 ATMs
- Number of employees: 232,296 (31 March 2024)
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