The Reserve Bank of India (RBI) has levied Rs 40 lakh penalty on State Bank of India (SBI) for failing to comply with its directives pertaining to detection and curbing the menace of counterfeit notes.
“The RBI has imposed, on March 01, 2018, a monetary penalty of Rs 4 million on State Bank of India for non-compliance with the directions issued by the RBI on Detection and Impounding of Counterfeit Notes,” said the central bank.
The regulatory body has also detected deficiencies on SBI’s part for non-compliance of directives with regards to counterfeit notes regulations.
The action is not planned to project the validity of any transaction or agreement entered into by the bank with its customers.
The Central bank had carried out several inspections for detecting the usage of counterfeit currency in two branches of India’s largest public sector lender.
RBI recently slapped penalties on several public sector and private banks for not adhering to the compliance.