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Saturday, April 13 2024

Regulatory Violations: RBI Fines SBI, Canara Bank and City Union Bank

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State Bank of India and Canara Bank were hit with financial penalties by the Reserve Bank of India (RBI) for breaking regulations, the central bank announced in a press release on Monday.

For failing to maintain depositor education awareness funds and for owning more than 30% of a company’s paid-up share capital, the State Bank of India was fined ₹ 2 crore.

“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” the Bundesbank stated.

The Canara Bank was fined ₹ 32.30 lakh for failing to rectify the rejected data and upload the same with the credit information companies within seven days of receiving such a rejection report from the CICs.

The RBI also fined City Union Bank ₹ 66 lakh for violations related to the divergence of non-performing assets.

“There was significant divergence between the non-performing assets, as reported by them and as assessed during the inspection. It did not put in place a system of periodic review of risk categorisation of accounts of its customers,” the RBI said.

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