RBI imposes monetary penalty on State Bank of India, Canara Bank

New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 crore on State Bank of India (the bank) under relevant section of the banking regulation Act.

In a release, the central bank said the action was 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.

A Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2022.

The examination revealed, inter alia, that it held shares as pledgee of an amount exceeding 30 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 banking regulation Act.

Similarly, the Reserve Bank of India (RBI) today imposed a monetary penalty of Rs 32.30 lakh on Canara Bank (the bank) for non-compliance with certain directions issued by RBI on 'Data Format for Furnishing of Credit Information to Credit Information Companies and other Regulatory

Measures', 'Resolution Framework 2.0 - Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)' and 'Resolution Framework - 2.0: Resolution of Covid-19 Related Stress of Individuals and Small Businesses'.

The action against the bank was 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 RBI said.

Further, the RBI imposed monetary penalty on Ocean Capital Market Limited, Rourkela, Odisha worth Rs 16 lakh, for non-compliance with certain provisions of the "Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and specific directions issued by RBI to the company, on submission of returns on XBRL platform.