RBI Imposes Rs 1.95 Crore Fine On Standard Chartered Bank

Reserve Bank of India (RBI) has imposed a Rs 1.95 crore fine on Standard Chartered Bank for its failure to report a cyber security incident under the prescribed time frame.

The bank also failed to credit the amount involved in the unauthorised electronic transactions apart from other reasons, a statement issued by RBI said.

The central bank further said that Standard Chartered Bank was penalised also for its non-compliance of RBI's directions on customer protection.

In addition to this, the bank also did not comply with “limiting liability” of customers in unauthorised  electronic banking transactions, cyber security framework in banks, credit card operations of banks along with guidelines on managing risks.

Standard Chartered Bank had also allowed direct sales agents to conduct KYC verifications and failed to ensure the integrity of data submitted in Central Repository of Information on Large Credits (CRILC).

The RBI after considering the bank's replies to the notice, oral submissions made during the personal hearing and additional submissions made by the bank, it concluded that the charge of contravention and non-compliance with the various provisions warranted imposition of penalty.