RBI imposes Rs 1.3 crore penalty on SBI for not adhering to norms

Mumbai: The Reserve Bank of India has imposed a penalty of ₹1.30 crore on State Bank of India for non-compliance with certain directions on loans and guidelines on the management of intra-group transactions and exposures.

An examination of a risk assessment report showed non-compliance with directions by SBI to the extent that the bank sanctioned a term loan to a corporation in lieu of or to substitute budgetary resources envisaged for certain projects without undertaking due diligence on the viability and bankability of the projects, the RBI said in a statement on Monday.

The central bank further said that the repayment or servicing of the loan was made out of budgetary resources and failed to adhere to the intra-group exposure limit.