Reserve Bank has imposed a penalty of Rs. 1 crore on an SBI associate bank, State Bank of Travancore, for violation of some of its instructions.
The monetary penalty has been imposed for violation of its instructions including reporting of data to Central Repository of Information on Large Credits (CRILC).
RBI set up CRILC to collect, store, and disseminate data on all borrowers’ credit exposures.
Banks are required to report all such information here, including classification of an account as SMA (Special Mention Accounts), on all borrowers having aggregate fund-based and non-fund-based exposure of Rs. 5 crore and above.
The statement further said 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.
After considering the bank’s reply, information submitted and documents furnished, RBI came to the conclusion that the bank had violated the instructions or guidelines issued, from time to time, which warranted imposition of monetary penalty on it.
Current Affairs: 4th January, 2016 Current Affairs Round up December, 2015.
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