Action on State Bank of India
Case Brief
The Reserve Bank of India imposed a penalty of Rs 5,62,555 on State Bank of India on July 12, 2013. The action was taken for violation of the terms of agreement with RBI relating to opening and maintaining currency chests, with deficiencies and lapses observed in the operation and maintenance of the Currency Chest at SBI’s Secunderabad branch.
RBI imposed a monetary penalty on State Bank of India under para 3(v) of circular DCM (CC) No. G-3/03.39.01/2012-13 and para 1(e) of circular DCM (CC) No. G-2/03.35.01/2012-13, citing violation of the agreement with RBI for opening and maintaining currency chests. The penalty was linked to deficiencies and lapses in the operation and maintenance of the Currency Chest at SBI, Secunderabad branch.
Severity Assessment
This is a monetary penalty of Rs 5,62,555, which falls in the lowest monetary band (<= Rs 2 lakh? no, but the given banding makes any amount up to Rs 2 lakh severity 1; however this amount exceeds Rs 2 lakh and is <= Rs 10 lakh, so severity 2 would normally apply.
State Bank of India must absorb the monetary penalty and address the deficiencies noted in currency chest operations and maintenance. The action does not describe any operational restriction beyond the fine, but it signals compliance expectations for the bank’s currency chest handling.
Published as State Bank of India
© 2026 RegOversight by OddVector