RBI imposes Rs 1 crore penalty on State Bank of India

'This action is based on the deficiencies in regulatory compliance,' says RBI

The Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs 1 crore on the country’s largest lender, State Bank of India (SBI), for not complying with directions issued by the central bank with regard to fraud classification and reporting by commercial banks.

“This action is 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," the RBI said in a statement.

Upon scrutinising a customer account maintained with SBI, the central bank found that the bank had