RBI has, by order dated March 15, 2021, imposed a monetary penalty of Rs. 2 Crore on SBI for contravention of provisions of section 10 (1) (b) (ii) of the Banking Regulation Act, 1949 and specific directions of RBI on payment of remuneration to employees in the form of commission.
Source RBI Press Release: 2020-2021/1249
The contravention of relevant provisions by SBI, a Govt. of India undertaking, has resulted in loss of public and its depositors money.
In view of the above, please provide the following information:
1. What form/mode of payment was used for remunerating employees in the form of commission? Was TDS at relevant rate deducted?
2. Was the commission linked to cross selling of insurance, mutual funds, credit cards, etc?
3. How much commission has been paid in the last five years to Chairman, MDs, DMDs, CGMs, GMs, DGMs, and AGMs, respectively? Please disclose only the avg. commission paid per employee for each post/designation.
4. Who authorized the payment of commission which were in contravention of the Banking Regulation Act?
5. What disciplinary action has been taken against the officer(s) responsible for loss of Rs. 2 Crore? Has SBI made any efforts to recover the amount of loss from responsible officer(s)?