The Reserve Bank of India on Monday imposed a penalty of Rs 1 crore for failing to comply with fraud classification rules. The regulator said it had scrutinized the accounts maintained with SBI and found lacunae in reporting Fraud.

“An inquiry was conducted by reserve Bank of India one in customer account The scrutiny of the inquiry report maintained with the bank and all related correspondence relating to the same, to the extent of delay in reporting the fraud in the said account to RBI, disclosed non-compliance with the above directions,” the regulator said in a statement.

It also issued a notice to the lender advising it to show cause a punishment He should not be charged for non-compliance of the above instructions.

“After considering the bank’s reply to the notice and oral submissions given by the bank in the personal hearing, RBI came to the conclusion that the allegation of non-compliance with the above directions of RBI was substantiated and warranted imposition of monetary penalty, said the regulator.

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