Sunday, February 5, 2023
  • English
  • Marathi
No Result
View All Result
Daily PRABHAT
  • Home
  • Latest News
  • National
  • International
  • Entertainment
  • Politics
  • Sports
  • Business
  • More
    • Health
    • Lifestyle
    • Technology
    • Science
Daily PRABHAT
No Result
View All Result
  • Home
  • Latest News
  • National
  • International
  • Entertainment
  • Politics
  • Sports
  • Business
  • More
Home Finance

RBI imposes monetary penalty on State Bank of India

by Digital Desk
1 year ago
in Finance, Headlines, National
A A
RBI imposes monetary penalty on State Bank of India
Share on FacebookShare on Twitter

Mumbai : The Reserve Bank of India (RBI) by an order dated November 16 has imposed a monetary penalty of Rs 1 crore on the State Bank of India for contravention of section 19 (2) of the Banking Regulation Act, 1949 (the Act), informed RBI.

“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” reads the official release.
As per the press note, the irregularities were identified after a Statutory Inspections for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial positions as on March 31, 2018, and March 31, 2019, and the examination of the Risk Assessment Reports, Inspection Report and all related correspondence pertaining to the same, revealed, inter-alia, contravention of section 19 of the Act.

Section 19 (2) of the Act says that “no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent of the paid-up share capital of that company or thirty per cent of its own paid-up share capital and reserves, whichever is less.”

“After considering the bank’s reply to the notice, oral submissions made during the personal hearing, and additional submissions made by the bank, RBI came to the conclusion that the charge of contravention of the aforesaid provisions of the Act was substantiated and warranted imposition of monetary penalty on the bank, to the extent of contravention of the aforesaid provisions of the act,” read the press note.

 

Tags: 1949Banking Regulation ActInspections for Supervisory EvaluationMumbaiRBIReserve Bank of IndiaState Bank of India
ShareTweetSendShareSend

Latest News

Bihar: 3 PFI suspects detained by NIA in Motihari, probe initiated

Former Madhya Pradesh minister’s daughter receives threat letter, case registered

Chargesheet filed against ex-Andaman Chief Secy, 3 others in gangrape case

Fan asks out SRK for Valentine’s Day date, check out his witty reply

US shoots down suspected Chinese spy balloon over Atlantic Ocean

Measures in place to address excessive volatility in specific stocks, says SEBI amid Hindenburg-Adani row

Uttarakhand: Properties worth Rs 3 cr seized from Ankita Bhandari Murder case main accused Pulkit Arya

Amitabh Bachchan, Rani Mukerji’s drama film ‘Black’ turns 18

SRK shares his experience of working with Nayanthara, Vijay Sethupathi in ‘Jawan’

Border-Gavaskar Trophy: A look at top five player-contests between India, Australia

Mumbai : The Reserve Bank of India (RBI) by an order dated November 16 has imposed a monetary penalty of Rs 1 crore on the State Bank of India for contravention of section 19 (2) of the Banking Regulation Act, 1949 (the Act), informed RBI. "This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," reads the official release. As per the press note, the irregularities were identified after a Statutory Inspections for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial positions as on March 31, 2018, and March 31, 2019, and the examination of the Risk Assessment Reports, Inspection Report and all related correspondence pertaining to the same, revealed, inter-alia, contravention of section 19 of the Act. Section 19 (2) of the Act says that "no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent of the paid-up share capital of that company or thirty per cent of its own paid-up share capital and reserves, whichever is less." "After considering the bank's reply to the notice, oral submissions made during the personal hearing, and additional submissions made by the bank, RBI came to the conclusion that the charge of contravention of the aforesaid provisions of the Act was substantiated and warranted imposition of monetary penalty on the bank, to the extent of contravention of the aforesaid provisions of the act," read the press note.  
No Result
View All Result
  • Home
  • Latest News
  • National
  • International
  • Entertainment
  • Politics
  • Sports
  • Business
  • More
    • Health
    • Lifestyle
    • Technology
    • Science