The Reserve Bank of India has taken strict action against State Bank of India, Canara Bank and City Union Bank for violation of regulatory norms. After this action, a fine of about Rs 3 crore has been imposed on the banks. The central bank said in its statement that a fine of Rs 2 crore has been imposed on State Bank of India for violation of certain norms related to the Depositor Education Awareness Fund Scheme, 2014. .
At the same time, RBI has imposed a fine of Rs 66 lakh on Citi Bank for violation of know your direction rule along with prudential rules of income recognition, asset classification and advance provisioning rules related to NPA accounts. Apart from this, RBI has imposed a fine of Rs 66 lakh on Citi Bank for non-compliance of some instructions. But a fine of Rs 32.30 lakh has also been imposed on Canara Bank. A fine of Rs 16 lakh has been imposed on Ocean Capital Market Limited, Rourkela, Odisha for non-compliance of certain provisions related to non-banking financial companies.
The RBI said the penalty in each case is based on deficiencies in regulatory compliance. It is not intended to affect the validity of any transactions or agreements entered into by entities with their customers.
