RBI imposed penalty of Rs 2 crore on State Bank of India

New Delhi: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 crore on State Bank of India (the bank) under relevant section of the banking regulation Act.
In a release, the central bank said the action was based on the 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.
 A Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2022.The examination revealed, inter alia, that it held shares as pledgee of an amount exceeding 30 per cent of paid-up share capital of certain companies and failed to credit eligible amount to Depositor Education and Awareness Fund within the period prescribed in the banking regulation Act.

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