RBI has imposed a hefty fine of Rs 1 crore on SBI for violation of rules. RBI has imposed this penalty for lack of regulatory compliance. RBI said in its statement that this penalty has been imposed in an order issued on November 16, 2021.
According to the central bank, a statutory oversight was carried out on the monitoring assessment of SBI between March 31, 2018 and March 31, 2019, with reference to the financial position. The examination of the risk assessment report, as per the order, found the inspection report to be in contravention of a provision of the Banking Regulation Act. SBI had pledged shares amounting to more than 30 per cent of the paid-up share capital of the companies in the case of borrower companies.
At the same time, RBI had also sent a show cause notice to SBI. After considering the bank’s reply, the penalty was ordered.