RBI imposed a fine of 1 crore on the country’s largest government bank, know what will be the effect on the customers?

State Bank of India: Country’s largest state-run bank SBI (SBI) has suffered a major setback. RBI has imposed a penalty of Rs 1 crore on SBI. RBI (Reserve Bank of India) has imposed this penalty on the bank for violating the rules. 

Order issued on November 16
RBI said in a statement on Friday that this penalty has been imposed in an order issued on November 16, 2021. According to the central bank, a statutory oversight was carried out on the monitoring evaluation of SBI between March 31, 2018 and March 31, 2019 with reference to the financial position.

Pledge of shares of higher amount
According to the order, scrutiny of risk assessment report, inspection report found violation of a provision of the Banking Regulation Act. SBI had pledged shares amounting to more than 30 per cent of the paid-up share capital of the companies in the case of borrower companies.

What will be the effect on the customers?
RBI then issued a show cause notice to SBI in this matter. The decision to impose penalty was taken after considering the bank’s reply. Let us tell you that this fine imposed on the bank will not affect the customers in any way. Their money and capital will be completely safe. 

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