The Reserve Bank of India has imposed a penalty of Rs. 5,62,555/- (Rupees Five Lakhs Sixty Two Thousand Five Hundred Fifty Five only) on July 12, 2013 on State Bank of India for violation of the terms of agreement with RBI (for opening and maintaining currency chests) under para 3 (v) of circular DCM (CC) No.G-3/03.39.01/2012-13 dated July 02, 2012 and para 1 (e) of DCM (CC) No.G-2/03.35.01/2012-13 dated July 02, 2012. The above penalty has been levied in connection with the deficiencies/lapses observed in the operation and maintenance of the Currency Chest at SBI, Secunderabad branch.

Ajit Prasad

Assistant General Manager

Regulatory penalty for currency chest agreement breach: bank fined for operational and compliance lapses. The Reserve Bank of India imposed a monetary penalty on State Bank of India for breaches of contractual and regulatory obligations relating to the operation and maintenance of a currency chest, levied under specified paras of two RBI circulars and citing deficiencies observed at the SBI Secunderabad currency chest.