RBI slaps penalty of Rs 1.95 cr on Standard Chartered Bank

The Reserve Bank on Monday imposed a penalty of Rs 1.95 crore on Standard Chartered Bank for its non-compliance with directions related with various issues, including cyber security.

The penalty imposed for non-compliance of 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' and Code of Conduct in Outsourcing of Financial Services by banks' among others, the central bank said in a statement.

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This penalty has been imposed in exercise of powers vested in the RBI under the Banking Regulation Act, 1949, it said.

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, it added.

After considering the bank's replies to the notice, oral submissions made during the personal hearing, and additional submissions made by the bank, it said, the RBI came to the conclusion that the charge of contravention of/ non-compliance with various norms.

RBI directions were substantiated and warranted imposition of monetary penalty on the bank, to the extent of non-compliance, the statement said.