RBI fines State Bank of India and Canara Bank for regulatory breaches
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New Delhi: The Reserve Bank of India (RBI) has imposed monetary penalties on the State Bank of India and Canara Bank for regulatory violations, according to a press statement on Monday.
State Bank of India faces a Rs 2 crore fine for violations related to depositor education awareness funds and exceeding the 30% shareholding limit in a company's paid-up share capital.
The RBI clarified that the action is based on regulatory compliance deficiencies and does not pass judgement on the validity of any transactions or agreements between the bank and its customers.
Canara Bank has been fined Rs 32.30 lakh for failing to rectify rejected data and upload it to credit information companies within seven days of receiving rejection reports. City Union Bank has incurred a Rs 66 lakh penalty for violations related to the divergence of non-performing assets.
The RBI highlighted significant discrepancies between reported and assessed non-performing assets during the inspection, emphasising the absence of a periodic review system for risk categorization of customer accounts.