The Reserve Bank of India ( RBI ) has imposed huge monetary penalties on two major players in the banking arena, namely the State Bank of India ( SBI ) and Canara Bank, citing violations and non-compliance issues.
SBI finds itself slapped with a hefty ₹2 crore fine for flouting provisions under the Banking Regulation Act, 1949. Specifically, this penalty zeroes in on breaches of Section 19(2) of the BR Act, along with Section 26A(2) of the same Act in tandem with the Depositor Education Awareness Fund Scheme, 2014.
In a similar way, Canara Bank has been dealt a monetary blow of ₹32.30 lakh for failing to toe the line on several RBI directives. These directives encompass crucial areas like data format for sharing credit information, and frameworks aimed at tackling COVID-19-related stress among MSMEs and individuals/small businesses.
These actions underscore the RBI’s unwavering stance on compliance with regulatory standards. Adhering strictly to these guidelines isn’t just about individual banks avoiding penalties—it’s about upholding the integrity of the banking sector and safeguarding the economy as a whole.
STATE BANK OF INDIA
SBI, a Fortune 500 company, stands as an eminent Indian Multinational Public Sector Bank and Financial Services Institution with its headquarters nestled in Mumbai. Boasting a rich legacy spanning over two centuries, SBI holds the esteemed reputation of being the most relied upon bank by generations of Indians.
With a commanding presence capturing a quarter of the market share, SBI caters to a staggering 48 crore customers through its expansive network encompassing over 22,405 branches, 65,627 ATMs/ADWMs, and 76,089 BC outlets. Rooted in its core values of Service, Transparency, Ethics, Politeness, and Sustainability, SBI remains steadfastly committed to fostering innovation and prioritising customer-centricity.
Diversifying its portfolio, SBI has ventured into various subsidiaries such as SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, and SBI Card, among others. Its global footprint spans across 29 foreign countries, operating seamlessly through 235 offices across different time zones.
CANARA BANK
Canara Bank boasts several noteworthy accomplishments, including pioneering initiatives such as the launch of an Inter-City ATM Network, securing ISO Certification for a branch, and introducing specialized services like Mahila Banking Branches and IT Consultancy Subsidiaries. The bank’s innovative spirit also led to unique offerings such as credit cards tailored for farmers and agricultural consultancy services.
Over the years, Canara Bank has reinforced its market position, evolving into a significant Financial Conglomerate with thirteen subsidiaries and sponsored institutions both domestically and internationally.
As of December 2023, the bank caters to over 11.30 crore customers through an extensive network comprising 9,585 branches and 12,120 ATMs/Recyclers across all Indian states and Union Territories.
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