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MUMBAI: RBI has penalised three major lenders – SBI, Canara Bank, and City Union Bank – for violating RBI norms. These fines come after an inspection of their books as of March 2022.
SBI has been fined Rs 2 crore for holding shares exceeding 30% of certain companies’ paid-up share capital, violating RBI regulations, and for failing to credit the eligible amount to the Depositor Education and Awareness Fund within the prescribed time frame.
City Union Bank faced a Rs 66 lakh fine due to significant divergence in reported and inspected non-performing assets, and the absence of a system for periodic review of customers’ account risk categorisation. Canara Bank incurred a Rs 32 lakh fine for failing to rectify and upload rejected data with credit information companies within seven days, and for restructuring certain accounts not classified as standard assets as of March 31, 2021, contrary to guidelines.
Additionally, RBI imposed a Rs 16 lakh penalty on Ocean Capital Market, an NBFC, for delayed submission of returns on the XBRL platform, breaching exposure limits on lending/investments, and failure to constitute various board committees. Before imposing the penalties, RBI issued show-cause notices to all lenders and recorded their submissions. After careful consideration, RBI decided to proceed with imposing the penalties.
SBI has been fined Rs 2 crore for holding shares exceeding 30% of certain companies’ paid-up share capital, violating RBI regulations, and for failing to credit the eligible amount to the Depositor Education and Awareness Fund within the prescribed time frame.
City Union Bank faced a Rs 66 lakh fine due to significant divergence in reported and inspected non-performing assets, and the absence of a system for periodic review of customers’ account risk categorisation. Canara Bank incurred a Rs 32 lakh fine for failing to rectify and upload rejected data with credit information companies within seven days, and for restructuring certain accounts not classified as standard assets as of March 31, 2021, contrary to guidelines.
Additionally, RBI imposed a Rs 16 lakh penalty on Ocean Capital Market, an NBFC, for delayed submission of returns on the XBRL platform, breaching exposure limits on lending/investments, and failure to constitute various board committees. Before imposing the penalties, RBI issued show-cause notices to all lenders and recorded their submissions. After careful consideration, RBI decided to proceed with imposing the penalties.
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