RBI imposes Rs. 1 crore fine on State Bank of Travancore
Reserve Bank has imposed a penalty of Rs. 1 crore on an SBI associate bank, State Bank of Travancore, for violation of some of its instructions.
“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 and its customers,” RBI said in a statement on Monday.
The monetary penalty has been imposed for violation of its instructions including reporting of data to Central Repository of Information on Large Credits (CRILC), it said.
RBI set up CRILC to collect, store, and disseminate data on all borrowers’ credit exposures.
Banks are required to report all such information here, including classification of an account as SMA (Special Mention Accounts), on all borrowers having aggregate fund-based and non-fund-based exposure of Rs. 5 crore and above.
The statement further said RBI had issued a show cause notice to the bank for not having complied with the directions issued by the bank on submission of accurate data to the CRILC.
After considering the bank’s reply, information submitted and documents furnished, RBI came to the conclusion that the bank had violated the instructions or guidelines issued, from time to time, which warranted imposition of monetary penalty on it.
Read full article: The Hindu
About 17,000 employees of the Reserve Bank of India are set to go on strike today for better retirement benefits Read more
Three banks snapped up almost 90 percent of bonds sold by Indian states to foreigners, and turned them into derivatives, Read more
NEW DELHI: The Employee Provident Fund Organisation (EPFO) is revisiting its decision to invest about Rs 6,000 crore in equities Read more
The rupee on Friday hit over two-year low amid continued selling by foreign institutional investors in domestic stock and debt Read more
