The Reserve Bank of India said it has levied a penalty of Rs 7 crore on State Bank of India. The penalty has been imposed on the bank for non-compliance of income recognition and asset classification 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. RBI said during a statutory inspection of SBI with reference to its financial position as on 31 March 2017, it was revealed that there was instance of 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. The regulator has also imposed a penalty of Rs 10 lakh on Union Bank of India for non-compliance with the directions on cybersecurity framework.
