The Reserve Bank of India (RBI) on October 18 has imposed a fine of Rs 1.95 crore on the Standard Chartered Bank. The fine was imposed because of failure on the part of the bank to report a cyber security incident within the prescribed time period, and also its failure to credit the amount involved in unauthorised electronic transactions, among other reasons.
The RBI said in a release that it imposed a penalty of Rs 1.95 crore on the Standard Chartered Bank over non-compliance with the directions issued by it regarding “customer protection”, while listing the above reasons.
The bank failed to comply with RBI rules on “limiting liability of customers in unauthorised electronic banking transactions, cyber security framework in banks, credit card operations of banks read with guidelines on managing risks and code of conduct in outsourcing of financial services by banks, and creation of a central repository of large common exposures across banks read with Central Repository of Information on Large Credits (CRILC) revision in reporting.”
Besides, the Standard Chartered Bank had also authorised direct sales agents to conduct KYC verifications and failed to ensure the integrity of data submitted in CRILC, the RBI said in its release.
