RBI imposes Rs 1 crore fine on State Bank of Travancore

The Reserve Bank of India (RBI) has imposed a monetary penalty of one crore rupees on State Bank of Travancore, an SBI associate bank for violation of some of its instructions.
The monetary penalty was imposed on State Bank of Travancore for violation of its instructions including reporting of data to Central Repository of Information on Large Credits (CRILC).
Prior to imposing the penalty, RBI had issued a show cause notice to the bank for not having complied with the directions issued by the bank on submission of accurate data to the CRILC.
Finally RBI came to the conclusion that the bank had violated the instructions or guidelines issued from time to time after considering the bank’s reply and information submitted and documents furnished.
Central Repository of Information on Large Credits (CRILC)
It has been established by RBI to collect, store, and disseminate data on all borrowers’ credit exposures.  It is mandatory for banks to report all such information under it including classification of an account as Special Mention Accounts (SMA) on all borrowers having aggregate fund-based and non-fund-based exposure of 5 crore rupees and above.

Month: Current Affairs - January, 2016