RBI fines SBI ₹2 cr for breaking norms, commission paid to staff

New Delhi: The Reserve Bank of India (RBI) on Tuesday said it has fined the country's largest lender State Bank of India (SBI) Rs 2 crore for contravention on norms related to payment of remuneration to employees in the form of commission.

"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the central bank said in its statement on its website.

The RBI said it fined the bank after finding the lapses while doing statutory audits for the year ended March 31, 2017 and March 31, 2018. The central bank also checked the risk assessment reports (RARs) and examined the correspondence with the bank regarding payment of remuneration to its employees in the form of commission etc.

While the details are not very evident, but a source in the bank said it could be something to do with the incentive scheme introduced by the bank during the period under consideration.