RBI slaps Rs 1.95-cr fine on StanChart for lapses in compliance

The introspection of the hazard appraisal report, inspection study and each related correspondence revealed non-compliance with directions issued by the regulator

The Reserve Bank of India (RBI) connected Monday imposed a good of Rs 1.95 crore connected the Indian operations of Standard Chartered Bank for non-compliance with aggregate regulatory directions. The overseas slope was recovered to beryllium non-compliant with directions pertaining to reversal of the magnitude progressive successful unauthorised physics transactions and reporting of cyber information incidents, among others.

The statutory inspection for supervisory valuation of the slope was conducted by the RBI with notation to its fiscal presumption arsenic connected March 31, 2020. The introspection of the hazard appraisal report, inspection study and each related correspondence revealed non-compliance with directions issued by the regulator.

The non-compliance pertained to nonaccomplishment to recognition (shadow reversal) the magnitude progressive successful unauthorised physics transactions, not reporting cyber information incidental wrong the prescribed clip period, authorising nonstop income agents to behaviour KYC verification, and nonaccomplishment to guarantee integrity and prime of information submitted successful the cardinal repository of accusation connected ample credits.

“In furtherance to the same, a announcement was issued to the slope advising it to amusement origin arsenic to wherefore punishment should not beryllium imposed connected it for contravention of / non-compliance with the aforesaid directions, arsenic stated therein. After considering the bank’s replies to the notice, oral submissions made during the idiosyncratic hearing, and further submissions made by the bank, the RBI came to the decision that the complaint of contravention of / non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary punishment connected the bank, to the grade of non-compliance with the aforesaid directions,” the RBI said connected its website.