RBI fined SBI Rs 1 crore, know why action was taken on the country’s largest lender?

Mumbai, 18/10:The Reserve Bank of India (RBI) has imposed a hefty penalty of Rs 1 crore on the country’s largest lender State Bank of India (SBI) for non-compliance of regulatory directions. RBI said that the penalty action has been taken by SBI for non-compliance of the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select Financial Institutions) Directions 2016.

What will be the impact on SBI customers?
RBI said that SBI had violated the rules for classification and reporting of frauds with customers on behalf of commercial banks and selected financial institutions. RBI said that it has imposed this penalty in exercise of the powers conferred under the provisions of Section-47A(1)(c) of the Banking Regulation Act, 1949. Also said that this action is based on deficiencies in regulatory compliance. The validity of any transaction or agreement entered into by the Bank with the customers shall not be affected.

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