INSUBCONTINENT EXCLUSIVE:
The Reserve Bank of India on Monday said it has slapped a penalty of Rs 7 crore on the country's largest bank State Bank of India or SBI for
non-compliance with norms related to NPA (non-performing asset) identification and fraud risk management, among others
The penalty has been imposed on the bank for non-compliance of income recognition and asset classification (IRAC) norms, code of conduct for
opening and operating current accounts and reporting of data on central repository of information on large credits (CRILC), and fraud risk
management and classification and reporting of frauds.Giving details of the case, it said the statutory inspection of SBI with reference to
its financial position as on March 31, 2017, revealed, non-compliance with IRAC norms, sharing of information about customers with other
banks, reporting of data on CRILC, fraud risk management, and classification and reporting of frauds.Based on the inspection report and
other relevant documents, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for
non-compliance with directions issued by the RBI."After considering the bank's reply and oral submissions made in the personal hearing, RBI
came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of
monetary penalty," the RBI said.The penalty, RBI said, is based on deficiencies in regulatory compliance and is not intended to pronounce
upon the validity of any transaction or agreement entered into by the bank with its customers.Get Breaking news, live coverage, and Latest
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