Current context: RBI imposed a penalty of Rs 7 crore on SBI and Rs 10 lakh on Union Bank of India for violating norms issued by RBI
a. Reserve Bank of India Act, 1934
b. Banking Regulation Act,1949
c. State Bank of India Act, 1955
d. Regional Rural Banks Act, 1976
- The RBI norms were related to fraud risk management, NPA identification and others
- SBI was found to violate the code of conduct for opening and operating current accounts(CRILC), income recognition and asset classification (IRAC) norms, fraud risk management and its reporting
- The Union Bank of India was fined for non-compliance on cybersecurity framework direction issued by RBI
- Based on the inspection, RBI issued a notice to SBI to reply for its non-compliance
- After bank’s reply, RBI concluded to impose a monetary penalty of Rs 7 crore
- RBI has imposed penalty with powers vested under the provision of section 47A(1)(c) of the Banking Regulation Act,1949
- The action shall not pronounce any agreement/transaction entered into by the bank with its customers
Question:
Q.1 With powers vested under which Act, RBI has recently imposed a penalty on SBI bank for non-compliance of its IRAC and CRILC norms?a. Reserve Bank of India Act, 1934
b. Banking Regulation Act,1949
c. State Bank of India Act, 1955
d. Regional Rural Banks Act, 1976
