RBI imposes penalties on SBI, Jana Small Finance Bank

May 9, 2025

Synopsis
The Reserve Bank of India (RBI) has levied a penalty of Rs 1,72,80,000 on State Bank of India (SBI) due to non-compliance with specific directives related to loans, customer protection, and current account openings. Additionally, Jana Small Finance Bank Ltd faces a Rs 1 crore penalty for violating provisions of the Banking Regulation Act, 1949.

The RBI on Friday said it has imposed penalties on State Bank of India and Jana Small Finance Bank for certain deficiencies in compliance of norms. The Reserve Bank of India (RBI) said a penalty of Rs 1,72,80,000 has been imposed on SBI for non-compliance with certain directions on "Loans and Advances-Statutory and Other Restrictions", "Customer Protection - Limiting Liability of Customers in Unauthorised Electronic Banking Transactions", and "Opening of Current Accounts by Banks - Need for Discipline".

In another statement, the central bank said a penalty of Rs 1 crore has been imposed on Jana Small Finance Bank Ltd for contravention of certain provision of of the Banking Regulation Act, 1949.

In both cases, the RBI said the penalties are based on deficiencies in compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

[The Economic Times]