RBI fines SBI and Jana Small Finance Bank for certain non-compliances

NEW DELHI: The Reserve Bank of India (RBI) on Friday fined State Bank of India and Jana Small Finance Bank for failing to follow certain regulatory non-compliances.According to the RBI, it has levied a fine of Rs 1,72,80,000 on SBI for failing to adhere to guidelines concerning "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".Separately, Jana Small Finance Bank Ltd received a Rs 1 crore penalty for violating particular provisions outlined in the Banking Regulation Act, 1949.The further RBI clarified that in both the cases, the penalties were imposed solely for compliance lapses and do not reflect on the validity of any transactions or agreements between the banks and their customers."The action (against SBI) 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. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank," RBI added.