Reserve Bank of India on Monday (February 26, 2024) imposed a fine of Rs 2 crore on State Bank of India (SBI) for deficiencies in regulatory compliance found in the lender's Depositor Education Awareness Fund Scheme, 2014. Apart from that, the RBI has also imposed monetary penalties on City Union Bank of Rs 66 lakh and Canara Bank of Rs 32.30 lakh.

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"The Reserve Bank of India (RBI) has, by an order dated February 26, 2024, imposed a monetary penalty of ₹2.00 crore (Rupees Two Crore only) on State Bank of India (the bank) for contravention of provisions of sub-section (2) of Section 19 of the Banking Regulation Act, 1949 (the BR Act), and sub-section (2) of Section 26A of the BR Act read with the Depositor Education Awareness Fund Scheme, 2014. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 51 (1) of the BR Act, the RBI said in a statement on Monday.

Penalty on City Union Bank

The central bank also imposed a penalty of Rs 66 lakh on City Union Bank for non-compliance with certain directions issued by the RBI on 'Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances - Divergence in NPA Accounts' and ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’.

Penalty on Canara Bank

The RBI imposed a Rs 32.30 lakh fine on Canara Bank for non-compliance with certain directions issued by the RBI on ‘Data Format for Furnishing of Credit Information to Credit Information Companies and other Regulatory Measures’, ‘Resolution Framework 2.0 – Resolution of Covid-19 related
stress of Micro, Small and Medium Enterprises (MSMEs)’ and ‘Resolution Framework - 2.0: Resolution of COVID-related Stress of Individuals and Small Businesses’.