RBI has imposed a penalty of ₹1.3 crore on State Bank of India and ₹1.62 crore on Indian Bank for non-compliance with guidelines on ‘Loans and Advances – Statutory and Other Restrictions’.The statutory Inspection of the banks for FY21 revealed that they had sanctioned a term loan to a corporation in lieu of or to substitute budgetary resources envisaged for certain projects and without undertaking due diligence on the viability and bankability of the projects. Further, the repayment/servicing of the loan was made out of budgetary resources. SBI also violated norms on ‘Management of Intra-Group Transactions and Exposures’ wherein it failed to adhere to the intra-group…
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RBI imposes ₹1.3 crore penalty on SBI, ₹1.6 crore on Indian Bank
