Who: State Bank of Travancore
What: 1 crore rupees Penalty imposed on it by RBI
When: 4 January 2016
Why: For violation of its instructions including reporting of data to CRILC
The Reserve Bank of India (RBI) on 4 January 2016 imposed monetary penalty of one crore rupees on State Bank of Travancore for violation of its instructions.
RBI in its release said, the monetary penalty has been imposed for violation of its instructions including reporting of data to Central Repository of Information on Large Credits (CRILC).
The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the violations of the instructions/directions/guidelines issued by the Reserve Bank from time to time.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers.
The Reserve Bank of India 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 Central Repository of Information on Large Credits (CRILC). After considering the bank’s reply, as also, personal submissions, information submitted and documents furnished, the Reserve Bank came to the conclusion that the bank had violated the instructions/guidelines issued, from time to time, which warranted imposition of monetary penalty on it.
Central Repository of Information on Large Credits (CRILC)
CRILC was set up by RBI to collect, store, and disseminate data on all borrowers’ credit exposures. Banks are required to report all such information, 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.