RBI imposes fine on two state-owned banks

The Reserve Bank said it has imposed penalties on three state-owned banks, including SBI and Indian Bank, for violation of various regulatory norms.

A penalty of Rs 1.3 crore has been imposed on the State Bank of India for noncompliance with certain directions issued by the RBI on ‘Loans and Advances – Statutory and Other Restrictions’ and ‘Guidelines on Management of Intra-Group Transactions and Exposures’, it said in a statement.

In another release, the RBI said a penalty of Rs 1.62 crore has been imposed on Indian Bank for contravention of certain directions on ‘Loans and Advances – Statutory and Other Restrictions’, KYC, and ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.