New Delhi, May 11 – The Reserve Bank of India (RBI) has imposed a fine of IC Rs 1.72 crore on the country’s largest government bank, State Bank of India (SBI). This fine has been imposed for not following banking rules.
RBI has accused SBI of not providing timely compensation to customers for losses incurred in unauthorized digital transactions and irregularities in opening current accounts.
RBI said in a statement issued on Friday, this penalty has been imposed only for not following the rules. This penalty has been imposed under the Banking Regulation Act, 1949. SBI was first given a notice and asked for a reply, but the bank’s reply was not satisfactory.
RBI had examined the financial position of SBI as on March 31, 2023. The investigation found that SBI violated the rules related to ‘Loans and Advances’. The bank gave bridge loans based on government subsidy/reimbursement, which is against the rules.
SBI also lagged behind in terms of customer security. In case of unauthorized digital transactions, money was not returned to the customer’s account within 10 days and compensation was delayed for 90 days. Rules were also ignored while opening the current account.
