RBI slaps Rs 7 cr penalty on SBI for violating NPA identification

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SBI

Mumbai: The Reserve Bank of India on Monday said it has slapped a penalty of Rs 7 crore on the country’s largest bank SBI for non-compliance with norms related to NPA identification and fraud risk management, among others.

The penalty has been imposed on the bank for non-compliance of income recognition and asset classification (IRAC) norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC), and fraud risk management and classification and reporting of frauds.

Giving details of the case, it said the statutory inspection of SBI with reference to its financial position as on 31 March, 2017, revealed, non-compliance with IRAC norms, sharing of information about customers with other banks, reporting of data on CRILC, fraud risk management, and classification and reporting of frauds.

Based on the inspection report and other relevant documents, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by the RBI.

“After considering the bank’s reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty,” the RBI said.

The penalty, RBI said, 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.

Onother hand A fire broke out on the sixth floor of the State Bank of India (SBI) building on Sansad Marg here on Thursday, Delhi Fire Services officials said.

No injury was reported, they added. The fire department was alerted about the blaze at 8.10 am, following which seven fire tenders were rushed to the spot.

“The fire broke out in an office on the sixth floor of the SBI building,” Chief Fire Officer Atul Garg said.

The firefighters brought the blaze under control by 8.30 am, he said, adding that efforts were on to ascertain what caused the fire.

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