RBI slaps Rs 1 crore penalty on State Bank of India; here's why

New Delhi: The Reserve Bank of India fined State Bank of India Rs 1 crore on Monday for failing to comply with fraud classification criteria. The regulator stated that it had conducted an investigation into accounts kept with SBI and discovered that it was weak in reporting frauds.

“A scrutiny was carried out by the RBI in a customer account maintained with the bank and the examination of the scrutiny report and all related correspondence pertaining to the same, revealed non-compliance with the aforesaid directions to the extent of delay in reporting of fraud in the said account to RBI,” the regulator said in a statement.

It also issued a notice to the lender, instructing it to show cause why a penalty should not be imposed on it for failing to comply with the stated directives.

“After considering the bank’s reply to the notice and oral submissions made by the bank in the personal hearing, RBI came to the conclusion that the charge of non- compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” the regulator said.