MUMBAI, Nov 27: 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. -TNN
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