Are you a State Bank of India (SBI) account holder? If yes, then you must know that your bank, which is the largest public lender in the country, has run into trouble with the Reserve Bank of India. The RBI has slapped a penalty of Rs 7 crore on the country's largest bank SBI. The Central Bank on Monday said that this decision has been taken for non-compliance with norms related to NPA identification and fraud risk management, among others. 

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The issue was found during RBI's statutory inspection of SBI with reference to its financial position as on March 31, 2017. 

The RBI said that this penalty has been imposed on the bank for:

1. Non-compliance of income recognition and asset classification (IRAC) norms, 
2. Code of conduct for opening and operating current accounts
3. Reporting of data on Central Repository of Information on Large Credits (CRILC)
4. Fraud risk management and classification and reporting of frauds.

In short, the inspection revealed non-compliance with IRAC norms, sharing of information about customers with other banks, reporting of data on CRILC, fraud risk management, and classification and reporting of frauds. 

The Reserve Bank sent a notice to the RBI on the basis of this inspection report and other relevant documents. The notice asked the bank to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by the RBI.

"After considering the bank's reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty," the RBI said. The penalty 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.