RBI has imposed a heavy fine on the country’s state-owned bank SBI, know….. 

News Punjab 

May 12, 2025 

The Reserve Bank of India (RBI) has imposed a penalty of Rs 1,72,80,000 on SBI, the country’s largest state-owned bank,  for violating certain rules. Along with this, a similar step has been taken on Jan Small Finance Bank. RBI said that it has imposed a penalty of Rs 1,72,80,000 on SBI.

According to the RBI, SBI did not properly follow the statutory and other restrictions on loans and advances, customer protection, limiting customer liability in unauthorised electronic banking transactions and instructions regarding opening of current accounts by banks.

RBI has taken this action to ensure regulatory compliance. This penalty will not have any direct impact on the safety of the deposits of the bank’s customers. In another statement, RBI said that a penalty of Rs 1 crore has also been imposed on Jan Small Finance Bank Limited for not properly complying with the provisions of the Banking Regulation Act, 1949.

This means that the RBI’s aim is only to show that the banks have not properly followed the regulatory guidelines. These penalties do not mean that all transactions or agreements entered into between banks and customers are invalid or illegal. It is noteworthy that when such rules are not followed, such actions are taken by the central bank from time to time.