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Reserve Bank of India imposes monetary penalty on State Bank of India

Category : Business and economics
Published on: November 27 2021 Share on facebook

  • The Reserve Bank of India has announced a monetary penalty of Rs. 1 crore against the State Bank of India for violating Section 19 (2) of the Banking Regulation Act, 1949. (The Act).
  • During its investigation, the RBI discovered that SBI had acquired an excessive number of shares in the loan-taking company. In exchange for the loan, the company offered the bank shares.
  • The pledging limit for any bank can be up to a maximum of 30 per cent of the paid-up share capital.
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