The Reserve Bank of India (RBI) has imposed monetary penalties on State Bank of India and Canara Bank for regulatory violations, the central bank said in a press statement on Monday.
State Bank of India was imposed a fine of Rs 2 crore for violations related to Depositor Education Awareness Fund and shareholding in a company of more than 30% of the paid-up share capital of that company.
“This action is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into by the bank with its customers,” the central bank said.
A penalty of Rs 32.30 lakh was imposed on Canara Bank for failing to rectify the rejected data and upload the same with credit information companies within seven days of receiving such rejection report from CIC.
RBI also imposed a penalty of Rs 66 lakh on City Union Bank for violations related to diversion of non-performing assets.
“There were significant differences between non-performing assets as reported by them and assessed during inspection. It did not maintain a system of periodic review of the risk classification of its customers’ accounts,” the RBI said.
