State Bank of India (SBI) has officially classified Reliance Communications’ loan account as a “fraud account”, citing alleged fund diversion that dates back to loans taken in 2016. In a June 23 communication, SBI’s Fraud Identification Committee highlighted complex intra-group transfers—such as ₹13,667 cr used to repay other loans and ₹12,692 cr routed to related entities—that violated sanctioned terms . The bank also stated that responses from RCom and its former director Anil Ambani were insufficient, and plans to report him to the RBI in accordance with regulatory guidelines . Under Indian banking regulations, this designation blocks RCom from accessing further bank finance for five years and triggers potential criminal investigation via enforcement agencies .

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