Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on State Bank of India (SBI) for deficiencies in regulatory compliance. The penalty has been imposed by an order dated November 16, 2021.
According to the central bank, Statutory Inspections for Supervisory Evaluation (ISE) of SBI was conducted with reference to its financial positions as on March 31, 2018 and March 31, 2019. The examination of the risk assessment reports, inspection report and all-related correspondence pertaining to the same revealed contravention of a provision of Banking Regulation Act ''to the extent the bank held shares in borrower companies, as pledgee, of an amount exceeding thirty per cent of paid-up share capital of those companies.
SBI is the country’s largest lender and it offers a wide range of services in the Personal Banking, Agriculture/ Rural, NRI services, SME and Corporate Banking etc.
