RBI slaps Rs 40 lakh penalty on SBI for flouting counterfeit notes norms

MUMBAI: The RBI has penalised SBI Rs 40 lakh for not complying with its directions on detection and impounding of counterfeit notes. The RBI said it found deficiencies on SBI’s part in regulatory compliance with counterfeit note norms. The action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI added.

The regulator had carried out inspection of currency chests of two branches of the country’s largest lender and noticed violation of its instructions issued on the detection and impounding of counterfeit notes. “Based on the inspection report and other relevant documents, a notice dated January 5, 2018 was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by the RBI,” it said.

After considering the lender’s reply and oral submissions made in personal hearing, the RBI concluded that these charges of non-compliance with its directions/guidelines were substantiated and warranted imposition of monetary penalty, said the notification.

State Bank of India