The RBI on Monday imposed a fine of Rs. 1.95 crore on Bank for not complying with various directions issued by the central bank with regard to customer protection cyber security framework in banks credit card operations and creation of a central repository of big common exposures'
This action is based on the deficiencies in regulatory compliance and is not intended to pronounce the validity of any transaction or agreement entered by the central bank with its customers said in a statement.
Upon carrying out a statutory inspection for the supervisory evaluation of the bank, RBI found that the bank did not report the amounts involved in unauthorised electronic transactions shadow reversal and did not report cyber security incidents within the prescribed period. Further, it authorised the third party to conduct KYC verification by direct sales agents. Also, it failed to ensure integrity and quality of data submitted in CRILC RBI central repository of Information on Large Credits issued a show cause notice as to the bank asking why a penalty should not be levied on it for not complying with various guidelines of the bank. And RBI decided to levy the penalty on the bank side of the story, after hearing both sides of the story.
RBI's directives were warranted and substantiated imposition of monetary penalty on the bank, in the extent of non-compliance with the aforesaid directions by RBI said.