RBI Penalizes SBI, Canara Bank, and Ocean Capital Market Limited for Regulatory Violations

The Reserve Bank of India (RBI) has taken stringent actions against several financial institutions for failing to comply with regulatory directives. State Bank of India (SBI) faces a penalty of Rs 2 crore for regulatory shortcomings, including holding shares exceeding 30% of certain companies’ paid-up capital and delays in depositing funds into the Depositor Education and Awareness Fund.

Similarly, Canara Bank has been fined Rs 32.30 lakh for non-compliance with RBI directives concerning credit information reporting, resolution frameworks for MSMEs, and individuals/small businesses affected by the COVID-19 pandemic.

Ocean Capital Market Limited in Rourkela, Odisha, also incurred a penalty of Rs 16 lakh for violating RBI guidelines on non-banking financial companies, including failure to submit returns on the XBRL platform.

The RBI clarified that these penalties were imposed solely due to regulatory breaches and do not imply judgments on the legality of transactions or agreements between the banks and their customers.