RBI Penalizes SBI Indian Bank & Punjab Sind Bank Latest News

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In a recent development, the Reserve Bank of India (RBI) has levied penalties on three public sector banks – State Bank of India (SBI), Indian Bank, and Punjab and Sind Bank. The penalties have been imposed due to the violation of various regulatory norms by these financial institutions. The RBI’s strict vigilance and steadfast commitment to maintaining the integrity of the Indian banking sector have been demonstrated through this actionIn a significant development, the Reserve Bank of India (RBI) has imposed penalties on three state-owned banks, namely the State Bank of India (SBI), Indian Bank, and Punjab and Sind Bank, citing violation of various regulatory norms The RBI has also imposed a penalty of Rs 8.80 lakh on Fedbank Financial Services Limited for non-compliance with certain provisions of the directions on

According to the central bank’s press release, the State Bank of India has been slapped with a hefty fine of Rs 2 crore for non-compliance with certain provisions of directions issued by the RBI on ‘Payment of Remuneration to Non-Executive Directors’ and ‘Maintenance of Deposit AccountsThe Indian Bank is facing a penalty of Rs 1 crore for not adhering to RBI’s ‘Master Directions on Frauds – Classification and Reporting’. The bank failed to classify a fraud account as a Non-Performing Asset (NPA) and report it to the Central Repository of Information on Large Credits (CRILC)On the other hand, Punjab and Sind Bank was fined Rs 50 lakh for violation of norms related to the opening and operation of current accounts

The penalties are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers,” the RBI said in its press releaseThese penalties were imposed after examining the banks’ replies to the show cause notices issued by the RBI and conducting a detailed examination of the caseThe RBI’s move to penalize these banks highlights the central bank’s continuous efforts to maintain strict regulatory compliance in the banking sector and protect the interests of the depositorsThese developments underscore the need for banks to adhere strictly to regulatory norms to ensure transparency, accountability, and the security of depositors’ funds. The RBI’s stringent action is a clear message to all banks about the importance of regulatory compliance in maintaining the health and integrity

The Reserve Bank on Monday said it has imposed penalties on three state-owned banks, including SBI and Indian Bank, for violation of various regulatory norms. A penalty of Rs 1.3 crore has been imposed on the State Bank of India for non-compliance with certain directions issued by the RBI on ‘Loans and Advances – Statutory and Other Restrictions’ and ‘Guidelines on Management of Intra-Group Transactions and Exposures’, it said in a statement.In another release, the RBI said a penalty of Rs 1.62 crore has been imposed on Indian Bank for contravention of certain directions on ‘Loans and Advances – Statutory and Other Restrictions’, KYC, and ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016A monetary penalty of Rs 1 crore on Punjab & Sind Bank was slapped for non-compliance with certain provisions of the depositor

The Reserve Bank of India (RBI) inspected the State Bank of India (SBI) and found that SBI did not follow the RBI’s rules when it gave a loan to a company. The company was using government money to repay the loan, which is not allowed. SBI also did not follow the rules for loans between companies in the same group Bank of India (RBI) has fined three state-owned banks, including State Bank of India (SBI) and Indian Bank, for violating various regulations. The central bank imposed Rs 1.30 crore on State Bank of India, Rs 1.62 crore penalty on Indian Bank, Rs 1 crore on Punjab & Sind Bank, and Rs 8.80 lakh on Fedbank Financial Services, the central bank

The monetary penalty was imposed on State Bank of India and Indian Bank as it sanctioned a term loan to a corporation in lieu of or to substitute budgetary resources envisaged for certain projects, without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations, and the repayment / servicing of which was made out of budgetary resources, the release said, as per a report in LivemintAfter reviewing the bank’s response to the notice, the oral submissions made during the personal hearing, and the additional submissions made by the bank, the RBI concluded that the charge of non-compliance was valid and that a monetary penalty was warranted