New Delhi: The Reserve Bank of India slapped a fine of Rs 1 crore on the State Bank of India (SBI) on Monday for not complying with fraud classification criteria.
The regulator is stated to have conducted a probe into accounts kept with SBI and found out that it was weak in reporting frauds.
“A scrutiny was carried out by the RBI in a customer account maintained with the bank and the examination of the scrutiny report and all related correspondence pertaining to the same, revealed non-compliance with the aforesaid directions to the extent of delay in reporting of fraud in the said account to RBI,” the RBI said via a statement.
The Central Bank of India also issued a notice to the lender, directing it to show cause why a penalty should not be slapped on it for failing to comply with the stated directives.
“After considering the bank’s reply to the notice and oral submissions made by the bank in the personal hearing, RBI came to the conclusion that the charge of non- compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” said the regulator said.
ALSO READ: RBI’s Monetary Policy Committee Decides To Retain Repo Rate At 4%
