RBI imposes monetary penalty on State Bank of India

Case Brief

By order dated March 15, 2021, RBI imposed a monetary penalty of Rs 2 crore on State Bank of India. The penalty was imposed for contravention of section 10(1)(b)(ii) of the Banking Regulation Act, 1949 and specific RBI directions on payment of remuneration to employees in the form of commission. RBI said the action followed statutory inspection, review of the relevant risk assessment reports, a show-cause notice, and consideration of the bank’s submissions, and that the findings were substantiated under the Act.