NEW DELHI: The Reserve Bank of India (RBI) has taken strong action against the State Bank of India (SBI) for failing to meet its standards in data accuracy and integrity. The central bank has imposed monetary penalties of Rs. 2.5 Crores as a result.
These penalties were issued in three separate letters, dated July 06, 2021, October 18, 2021, and November 26, 2021.
According to the RBI, SBI failed to ensure the utmost care was taken with regard to the data accuracy and integrity while submitting the data on large credit to the RBI through the CRILC portal.
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.
i. Rs. 50 Lakh (Rupees Fifty Lakh only) for failure to ensure taking utmost care about data accuracy and integrity while submitting the data on large credit (through CRILC portal) to the Reserve Bank during the quarter ended on June 30, 2021.
ii. Rs. 1 crore (Rupees One Crore only) for non-compliance with the directions contained in ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016’ during the quarter ended on September 30, 2021.
iii. Rs. 1 crore (Rupees One Crore only) for contravention of provision of sub section (2) of Section 19 of the Banking Regulation Act, 1949 during the quarter ended on December 31, 2021.
This failure led to non-compliance with the directions set forth in the RBI (Frauds classification and reporting by commercial banks and select FIs) Directions, 2016.
Additionally, SBI was found to have contravened provisions of subsection (2) of Section 19 of the Banking Regulation Act, 1949.
The imposition of monetary penalties by the RBI serves as a reminder to all banks to take their responsibilities for data accuracy and integrity seriously.
Banks are required to maintain a high level of transparency and accountability in all aspects of their operations, and the RBI will not hesitate to take action against any bank that fails to do so. This serves as a warning to the SBI and other banks to ensure they meet all regulatory standards set by the RBI.
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