(Image source from: RBI fines SBI again)

The Reserve Bank of India has once again fined the State Bank of India for violating currency chest norms. This news comes in the wake of a Rs 3 crore fine imposed on the bank last month for violating Know Your Customer (KYC) norms.

SBI's Secunderabad branch was found to have lapses and deficiencies pertaining to the operation and maintenance of the currency chest. Hence, the bank is now slapped with Rs 5.6 lakh as penalty.

According to the central bank statement, SBI had violated the RBI terms of agreement for opening and maintaining currency chests. An investigation over an allegation of money laundering exposed the said violations. SBI and a handful of other banks allowed the opening of bank accounts and lockers without heeding the KYC norms, which enabled conversion of black money into white.

RBI stated that the conclusion was drawn after considering the facts of each case, therefore substantiating the allegations.

(AW: Sruthi)