Case Brief
What Happened
By an order dated July 15, 2019, RBI imposed a monetary penalty of ₹70 million on State Bank of India. The penalty was imposed under section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949, after a statutory inspection found non-compliance with RBI directions on IRAC norms, the code of conduct for opening and operating current accounts, reporting data on CRILC, and fraud risk management and fraud reporting. RBI stated that the action was based on regulatory deficiencies and did not pronounce on the validity of any transaction or agreement entered into by the bank with its customers.