RBI Takes Action Against SBI, City Union Bank, and Canara Bank for Rule Breaks
Representational pic
The Reserve Bank of India (RBI) has stepped in against the State Bank of India (SBI), City Union Bank, and Canara Bank for not following rules.
Penalty on State Bank of India (SBI):
SBI has to pay a fine of Rs 2 crore because it didn’t stick to the rules laid out in the Banking Regulation Act of 1949 and the Depositor Education Awareness Fund Scheme of 2014. The fine, decided on February 26, 2024, is because SBI didn’t do what it was supposed to do under the Depositor Education Awareness Fund Scheme. RBI made this decision using its powers mentioned in certain sections of the BR Act.
Penalty on City Union Bank:
City Union Bank got a penalty of Rs 66 lakh from RBI for not following specific rules about how to recognize income, classify assets, and make provisions for loans, and also for not properly following the guidelines in the RBI’s ‘Know Your Customer (KYC)’ directions from 2016.
Penalty on Canara Bank
Canara Bank has to pay a penalty of Rs 32.30 lakh to RBI. This penalty is because Canara Bank didn’t follow RBI’s rules about sharing credit information with credit companies, helping out small businesses during COVID-19, and dealing with the financial stress caused by the pandemic for individuals and small businesses.
These penalties show that RBI is serious about making sure banks follow the rules and regulations they’ve set to keep the banking system running smoothly.
