Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹1,72,80,000 on State Bank of India by order dated April 29, 2025. RBI said the bank had violated directions relating to loans and advances, customer protection for unauthorised electronic banking transactions, and the opening of current accounts by banks. The cited lapses included extending a bridge loan against receivables from government subsidy/reimbursement, failing to timely credit shadow reversals and compensate customers for unauthorised transactions, and opening/maintaining certain current accounts contrary to regulatory requirements. RBI stated the penalty was based on supervisory findings from ISE 2023 and was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.