InvestorQ : Why RBI has penalised SBI and other three PSU banks?
Isha Tharwani made post

Why RBI has penalised SBI and other three PSU banks?

user profile image
tanvi Patel answered.
1 year ago

In the recent development in Banking sector Reserve Bank of India (RBI) has imposed a penalty on four public sector banks for violating various norms in monetary terms. These banks include Corporation Bank, State Bank of India, Bank of Baroda and Union Bank of India. ?2 crore penalty on Corporation Bank while the other three banks had been levied with a penalty of ?1 crore each.

This move from RBI comes due to non-compliance of these bank with various directions issued by RBI on monitoring of end-use of funds, exchange of information with other banks, classification, and reporting of frauds, and on the restructuring of accounts.

On 12th Feb 2019, that is on this Tuesday, the RBI has also imposed penalties on Allahabad Bank, Bank of Maharashtra and Indian Overseas Bank of Rs 1.5 crore while Andhra Bank also has to pay a penalty of Rs 1 crore.

This continuous penalization on Bank from RBI is an indication that RBI is taking all its rules and regulation seriously and failure in execution of any these regulation will be dealt on a serious note. This move from RBI has built faith in public that the banking sector is on strict surveillance.