The Reserve Bank of India (RBI) has imposed a penalty of Rs 88.70 lakh on SBM Bank (India) for non-compliance of certain regulatory norms. The Reserve Bank said on Friday that the fine has been imposed on the bank for non-compliance with the conditions related to RBI’s license.
The Reserve Bank of India (RBI) has imposed a penalty of Rs 88.70 lakh on SBM Bank (India) for non-compliance of certain regulatory norms. The Reserve Bank said on Friday that the fine has been imposed on the bank for non-compliance with the conditions related to the RBI license. Apart from this, the unit has been given special instructions to stop transactions under the Liberalized Remittance Scheme (LRS) with immediate effect.
Two separate notices were issued to the bank, asking it to explain its reasons. After considering the bank’s replies to the notices, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the allegations against SBM Bank (India) were substantiated and warranted imposition of monetary penalty.
The bank also carried out some transactions under the liberalised remittance scheme despite RBI’s directive to stop such transactions with immediate effect. However, RBI said that the penalty is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into by the bank with its customers.
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