 "rbi reserve bank of india")
The Reserve Bank of India (RBI) on Monday imposed a monetary penalty on State Bank of India (SBI), Canara Bank, and City Union Bank for violation of various norms.
The largest lender, SBI, was penalised with Rs 2 crore for holding shares as pledgee of an amount over 30 per cent of the paid-up share capital of certain companies and for failing to credit an eligible amount to the Depositor Education and Awareness Fund within the period prescribed in the Banking Regulation Act (BR Act).
In the case of Canara Bank, RBI found that the lender failed to correct rejected data and upload the same with Credit Information Companies (CICs) within seven days of receipt of such rejection report from the CICs and for restructuring accounts which are not standard assets as on March 31, 2021, as per norms related to COVID-19 related restructuring.
Private sector lender City Union Bank had reported significant divergence between the Non-Performing Assets (NPAs) and as assessed during the inspection. Also, the bank did not put in place a system of periodic review of risk categorisation of accounts of its customers. The lender was fined Rs 66 lakh.
The RBI took action after conducting Statutory Inspection for Supervisory Evaluation (ISE 2022) of the three lenders with reference to their financial position as on March 31, 2022.
