RBI imposed a fine of ₹ 1.72 crore on SBI: accused of violating banking rules; Customers did not give timely compensation

Mumbai56 minutes ago

Copy link

State Bank of India (SBI), the country’s largest government bank, has been fined by the Reserve Bank of India (RBI). This penalty has been imposed for not following banking rules.

The RBI has accused SBI of not giving timely compensation to customers in case of damage in untouchable digital transactions and disturbances in opening a current account.

Understand the whole matter in 3 points

The RBI investigated the financial status of SBI on 31 March 2023. Investigation found that SBI violated the rules related to ‘Lone and Advance’. The bank gave a bridge loan based on the government subsidy/reimbursement, which is against the rules.
SBI lagged behind in terms of customer safety. Due to non -avatharyged digital transactions, the customers did not return the money within 10 days and delayed the compensation in 90 days.
Rules were also ignored in opening a current account.

RBI said the reply was not satisfactory The RBI said in a statement released on Friday, the penalty has been imposed only for not following the rules. This fine has been imposed under the Banking Regulation Act, 1949. SBI was first sought to reply by giving notice, but the bank’s reply was not satisfactory.

A fine of Rs 1.3 crore was imposed in 2022 This is not the first time SBI has been fined by RBI. In 2022, the bank was also fined Rs 1.3 crore. Earlier in 2020, 5 banks, including SBI, were fined Rs 4.5 crore for violating the current account rules.

SBI income reached ₹ 1.44 lakh crore The bank said that it has made a net profit of Rs 18,643 crore in the January-March quarter. However, it has decreased by 10% on an annual basis. The bank’s total income increased by 12.04% to Rs 1,43,876 crore in the January-March quarter.

It was Rs 1,28,412 crore in the same quarter of last year. At the same time, it was 11.99% more than the previous quarter.