MUMBAI: The RBI has imposed a Rs 1-crore penalty on SBI for contravention of the Banking Regulation Act and holding shares in borrower companies exceeding 30%.
The RBI had also imposed fines on two payment system operators — Tata Communications Payment Solution (TCPSL) and Appnit Technologies. TCPSL was fined Rs 2 crore for not meeting guidelines on white-label ATM deployment. Appnit was penalised for not following RBI norms on maintenance of escrow account balance and net worth requirement.
In a press release, the central bank said that during inspection of SBI, it was detected that the bank held shares in borrower companies, as pledgee, of an amount exceeding 30% of paid-up share capital of those companies. This is in contravention of sub-section (2) of section (19) of the Banking Regulation act.
“In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it,” the RBI said in a statement. After considering the bank’s reply to the notice, oral submissions made during the personal hearing, and additional submissions made by the bank, the RBI decided that a penalty was justified.
The RBI had also imposed fines on two payment system operators — Tata Communications Payment Solution (TCPSL) and Appnit Technologies. TCPSL was fined Rs 2 crore for not meeting guidelines on white-label ATM deployment. Appnit was penalised for not following RBI norms on maintenance of escrow account balance and net worth requirement.
In a press release, the central bank said that during inspection of SBI, it was detected that the bank held shares in borrower companies, as pledgee, of an amount exceeding 30% of paid-up share capital of those companies. This is in contravention of sub-section (2) of section (19) of the Banking Regulation act.
“In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it,” the RBI said in a statement. After considering the bank’s reply to the notice, oral submissions made during the personal hearing, and additional submissions made by the bank, the RBI decided that a penalty was justified.
More News
Swiggy IPO: Food delivery platform bags shareholder approval for $1.2 billion offering; know all the details here | India Business News – Times of India
Tech Mahindra misses Q4 revenue view on weak communications segment – Times of India
‘Impending market plunge: Top strategist forecasts 44% S&P 500 crash’ – Times of India