New Delhi. The Reserve Bank of India has imposed a fine of Rs 1 crore on the country’s largest commercial bank State Bank of India for non-compliance of the instructions and Rs 1.95 crore on foreign bank Standard Chartered Bank for not following the customer protection guidelines.
The Reserve Bank gave information about the penalty on these banks late last evening. This penalty has been imposed on State Bank for not following the instructions of the bank regulator. This action has been taken for not following the RBI directive 2016 on him. The central bank has clarified that this fine will not affect any customer of the bank nor will there be any reduction in customer service.
The Central Bank conducted a check of a customer’s account in which it was found that his instructions were not followed. It was also learned that the information about the fraud was given to him late. After this notice was issued to the State Bank and after its clarification, the Central Bank has imposed a fine of Rs.
Foreign Bank Standard Chartered by Reserve Bank on Bank with ‘Customer Protection – Limited Liability of Customers in Unauthorized Electronic Banking Transactions’, ‘Cyber Security Framework in Banks’, ‘Guidelines on Risk Management and Code of Conduct in Outsourcing of Financial Services by Banks’ Rs 1.95 crore for non-compliance of directions issued on ‘Central Repository of Information on Credit Card Operations of Banks’ and ‘Central Repository of Information on Large Credit (CRILC) – Amendment in Reporting’ with ‘Creation of Central Repository of Large General Exposure – in Banks’ has been fined. This has been imposed in exercise of the powers vested in the Reserve Bank under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
The central bank has said that this action is based on deficiencies in regulatory compliance and is not intended to question the validity of any transaction or agreement entered into by the said bank with its customers.