Mumbai: The Reserve Bank of India on Monday imposed a monetary penalty of Rs 1.95 crore on Standard Chartered Bank India.
The penalty was imposed for non-compliance with the directions issued by the RBI on ‘Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’, ‘Cyber Security Framework in Banks’, ‘Credit Card Operations of Banks’ amongst others.
“This action is based on the 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,” the RBI said in a statement.
According to the RBI, a statutory inspection for supervisory evaluation (ISE) of the bank was conducted with reference to the bank’s financial position as on March 31, 2020.
Besides, risk assessment and inspection reports were examined which revealed the non-compliance with directions.
“In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of or non-compliance with the aforesaid directions.
“After considering the bank’s replies to the notice, oral submissions made during the personal hearing, and additional submissions made by the bank, the RBI came to the conclusion that the charge of contravention of or non-compliance… was substantiated and warranted imposition of monetary penalty on the bank,” the statement said.
(IANS)