The Reserve Bank of India (RBI) on Monday forced a monetary penalty of Rs 1 crore on the State Bank of India (SBI) for non-compliance with some directions. The breach is regarding frauds classification and reporting by commercial banks and select financial organisations, RBI stated.

This action is done due to lack of regulatory compliance and doesn’t intend to declare the validity of any agreement entered into by the bank with its clients, RBI said in a statement. RBI carried an analysis of the bank in a customer account kept with the bank and examined the scrutiny report that revealed non-compliance with reporting of fraud in the given account to RBI, the central bank told.

• Lodha Developers Buys Solidrise for Rs 300 Cr; Shares Jump 1.5%
• Stocks Under F&O Ban: Sammaan Capital, and Others 
• Overnight Stock Market Movements: Key Developments 
• India Approves 25 LMT Wheat, 5 LMT Sugar Export Quota
• US Core Inflation Seen at 5-Year Low Ahead of Friday Report

“A notice was issued to the bank saying it to give a reason of why penalty shouldn’t be imposed on it for such non-compliance with given directions,” RBI said. After considering SBI’s reply, the RBI charged the non-compliance with their directions was verified and warranted imposition of monetary penalty, RBI declared.