RBI imposes monetary penalty on SBI, two other banks for rule violations

Reserve Bank of India

The Reserve Bank of India (RBI) on February 26 said it has imposed monetary penalty on State Bank of India, Canara Bank, and City Union Bank for rule violations.

The central bank imposed Rs 2 crore penalty on State Bank of India, Rs 32.30 lakh on Canara Bank, and Rs 66 lakh on City Union Bank.

State Bank of India has been penalised as it held shares as pledgee of an amount exceeding thirty per cent of paid-up share capital of certain companies and failed to credit eligible amount to Depositor Education and Awareness Fund within the period prescribed in the BR Act, RBI said in a release.

Further, the Canara Bank was penalised as bank failed to rectify the rejected data and upload the same with the Credit Information Companies (CICs) within seven days of receipt of such rejection report from the CICs and restructured certain accounts which were not standard assets as on March 31, 2021 under the extant directions, release added.

City Union Bank has non-complied with the aforesaid directions by the bank, to the extent there was significant divergence between the Non-performing Assets (NPAs), as reported by it and as assessed during the inspection, and it did not put in place a system of periodic review of risk categorisation of accounts of its customers, RBI said in a release.