RBI slaps Rs. 2 crore penalty on SBI for ‘deficiencies in regulatory compliance’

RBI has slapped a penalty of Rs. 2 crore on SBI over “deficiencies in regulatory compliance”.

RBI, in a press release, said, “This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.”

SBI was penalised for “contravention of provisions of section 10 (1) (b) (ii) of the Banking Regulation Act, 1949 (the Act) and specific directions of RBI issued to the bank on payment of remuneration to employees in the form of commission”, the statement read.

“This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47A (1) (c) read with sections 46 (4) (i) and 51 (1) of the Act,” it further added.