Context:
The Reserve Bank of India (RBI) has levied monetary penalties on State Bank of India (SBI) and Jana Small Finance Bank for violations of regulatory norms, highlighting the central bank’s continued focus on supervisory enforcement in the banking sector.
Penalty on State Bank of India (SBI):
- Amount: ₹1.73 crore (₹1,72,80,000)
- Regulatory Violations:
- Breach of “Loans and Advances – Statutory and Other Restrictions”
- Non-compliance with “Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions”
- Violation of “Opening of Current Accounts by Banks – Need for Discipline”
Penalty on Jana Small Finance Bank:
- Amount: ₹1 crore
- Reason: Contravention of certain provisions under the Banking Regulation Act, 1949
Clarification by RBI
- These penalties are related to deficiencies in regulatory compliance.
- The penalties do not impact the validity of any customer transactions or agreements with the concerned banks.
Contextual Update
- In March 2025, the RBI had also penalized:
- HSBC Bank: ₹66.60 lakh
- IIFL Samasta Finance: ₹33.10 lakh
