New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 crore on State Bank of India (Bank) under the relevant section of the Banking Regulation Act.
In a release, the central bank said the action was based on deficiencies in regulatory compliance and was not intended to adjudicate on the validity of any transactions or agreements entered into by the bank with its customers.
A statutory inspection was conducted by the RBI for supervisory assessment of the bank with reference to its financial position as on March 31, 2022. The investigation revealed that, among other things, he had pledged shares amounting to more than 30 per cent of the payment. Some companies failed to deposit the eligible amount in the Depositor Education and Awareness Fund within the period prescribed in the Share Capital and Banking Regulation Act.