The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.72 crore on the State Bank of India (SBI) for failing to comply with multiple regulatory directions. The action follows a Statutory Inspection for Supervisory Evaluation (ISE 2023) conducted with reference to SBI’s financial position as of March 31, 2023.
According to a statement issued by the RBI, SBI was found non-compliant with several guidelines, including those related to ‘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’.
The central bank noted that SBI had extended a bridge loan to an entity against receivables from the Central or State Government, which is in violation of the RBI’s directions. It was also observed that the bank failed to credit (through shadow reversal) amounts involved in unauthorised electronic transactions within the mandated 10 working days, and did not compensate certain customers within the prescribed 90 days.
Additionally, SBI was charged with opening and maintaining current accounts in contravention of regulatory requirements.
RBI clarified that the penalty has been imposed under the provisions of the Banking Regulation Act, 1949, and is based on deficiencies in regulatory compliance. The action does not question the validity of any transactions or agreements made by the bank with its customers.
“The imposition of this monetary penalty is without prejudice to any other action that may be initiated by the RBI against the bank,” the statement added.
