RBI Takes Action Against Major Banks

The Reserve Bank of India (RBI) has recently imposed significant fines on State Bank of India (SBI) and Jana Small Finance Bank due to their failure to comply with certain regulatory guidelines.

Details of the Fines

SBI has been penalized with a fine of Rs 1,72,80,000 for not adhering to guidelines related to loans and advances, customer protection, and the opening of current accounts. Meanwhile, Jana Small Finance Bank received a Rs 1 crore penalty for violating specific provisions of the Banking Regulation Act, 1949.

RBI's Clarification

The RBI clarified that these penalties are solely for compliance lapses and do not question the validity of any transactions or agreements between the banks and their customers. "The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the RBI stated.

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