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RBI imposes Rs 1 crore penalty on SBI for non-compliance

The monetary penalty of RBI says that the violation is connected to rules that include frauds committed and reported by commercial banks and select financial institutions.

RBi enforced a penalty of 1 crore on the State Bank Of India (SBI) for non-compliance.

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This decision was taken after the RBI found deficiencies in the regular compliances. However it is not related to its customers and any of their transactions, the RBI stated.

The central bank conducted an inspection on a customer account in SBI and the report showed the non-compliance with the directions when it came to reporting fraud in the RBI account.

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The RBI also said that a notice was issued to the SBI asking them why a penalty should not be issued for such a non-compliance with directions.

After SBI’s reply, the RBI imposed this penalty stating that it was warranted.

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Previously, the RBI imposed a penalty of Rs. 1.96 crore on the Standard Chartered Bank for failing to report a cyber-security issue within the given time and also failing to credit the amount involved in the transactions.

All these reasons were listed by the RBI and issued the penalty of non-compliance directing that it was regarding ‘customer protection’.

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The penalties imposed by RBI are informed to the public through press releases and the regulated entity i.e. the banks have to pay the penalty within a specific time.

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