RBI penalizes Rs 4 million on SBI over fake notes policy
 Source : NewsBharati  Date : 08-Mar-2018

New Delhi, March 8: The Reserve Bank of India (RBI) has slapped a fine of Rs 4 million against the State Bank of India (SBI) for violating regulations regarding Detection and Impounding of Counterfeit Notes.

The RBI had conducted inspections at two of the SBI's branches which exposed the violations. The RBI has sent the SBI a notice to show cause as to why penalty should not be imposed on it. 

“A monetary penalty of Rs 4 million (Rs 40 lakh) on State Bank of India (the bank). 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,” RBI said in a statement.

“Based on the inspection report and other relevant documents, a Notice, dated January 05, 2018, 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 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/ guidelines were substantiated and warranted imposition of monetary penalty,” RBI added.

Earlier, a fine of Rs 3 crore and Rs 2 Crore was imposed on Axis Bank and Indian Overseas Bank for non-compliance with the directions issued on Income Recognition and Asset Classification norms.

RBI said the action on the two banks 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.