RBI Imposes Penalties on SBI, Canara Bank and City Union Bank for Rule Violations

The Reserve Bank of India (RBI) has imposed monetary penalties on State Bank of India (SBI), Canara Bank and City Union Bank for deficiencies in regulatory compliance. 

Canara Bank: Fined Rs 32.30 lakh on February 6, 2024, for failing to adhere to RBI guidelines on credit information sharing and resolution frameworks for COVID-19-related stress in MSMEs and individuals.

City Union Bank: Fined Rs 66 lakh on February 8, 2024, for non-compliance with RBI regulations on income recognition, asset classification, and Know Your Customer (KYC) norms.

State Bank of India: Fined Rs 2 crore on February 26, 2024, for violating provisions related to the Depositor Education and Awareness Fund Scheme, 2014.

The Central Bank clarified that these penalties are solely based on deficiencies in regulatory compliance and do not imply the invalidity of any transaction or agreement entered into by the banks with their customers.