The apex banking authority has slapped the leading state-run lender SBI with a penalty of Rs. 7 crore for not meeting some of the specified norms in relation to NPA or non-performing assets identification and fraudulent risk management, among others.

The issue came to the notice of RBI during statutory inspection of the bank for its financial position as on March 31, 2017.

The various grounds cited by the RBI for the levy of penalty on SBI include:

1. Non-adherence to income recognition and asset classification (IRAC) norms
2. Code of conduct in respect of opening and operation of current accounts.
3. Data reporting in respect of Central Repository of Information on Large Credits (CRILC)
4. Classification and reporting of frauds and fraud risk management.
5. Sharing of customers data with other banks.

So, on the basis of statutory audit inspection report and other relevant documents, the State Bank of India has been served a notice by the RBI to show-cause as to why the penalty should not be levied on the bank for not meeting the stipulations issued by the central bank.

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