RBI imposes nearly Rs 3 cr fine on SBI, Canara Bank, and City Union Bank

MUMBAI, Feb 26 : The Reserve Bank of India (RBI) on Monday said it has imposed penalties amounting to almost Rs 3 crore on State Bank of India, Canara Bank, and City Union Bank for violation of regulatory norms.

In a statement, the RBI said a penalty of Rs 2 crore has been imposed on the State Bank of India (SBI) for contravention of certain norms related to the Depositor Education Awareness Fund Scheme, 2014.

A penalty of Rs 66 lakh has been imposed on City Union Bank Limited 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 Know Your Customer Directions, it said in another release.

The RBI has also levied a penalty of Rs 32.30 lakh on Canara Bank for non-compliance with certain directions.

A penalty of Rs 16 lakh has been imposed on Ocean Capital Market Ltd, Rourkela, Odisha, for non-compliance with certain provisions related to non-banking financial companies.

In each case, the RBI said the penalties are 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 entities with their customers. (PTI)