Mumbai: reserve Bank of India (RBI) said on Tuesday that it has imposed a fine of Rs 5 crore axis Bank for contravention of certain provisions of the directions issued by reserve Bank of IndiaIncluding cyber security framework.
Penalty has been imposed for “contravention/non-compliance” with certain provisions of the directions issued by RBI. These include ‘strengthening control of the payments ecosystem between sponsor banks and SCBs/UCBs as corporate customers’; ‘Cyber Security Framework in Banks’; and the ‘Reserve Bank of India (Financial Services to be Provided by Banks) Directions, 2016’.
These also include ‘Financial Inclusion-Access to Banking Services-Basic Savings Bank Deposit Account’; and ‘Fraud-Classification and Reporting’.
The RBI said that the statutory inspections for Supervisory Appraisal (ISE) of the bank were conducted with reference to the financial position as on March 31, 2017, (ISE 2017), March 31, 2018, (ISE 2018), and March 31, 2019. (ISE 2019).
Violation/compliance of instructions has been disclosed – investigation risk assessment report Related to ISE 2017, ISE 2018 and ISE 2019; Report of the investigation conducted by RBI in the background of the incident relating to fraud and related correspondence; and Incident Report submitted by the Bank in June 2020 relating to certain suspicious transactions and related correspondence.
Notice was issued to the bank to show cause as to why penalty should not be imposed on it for failure to comply with the directions.
After considering the bank’s replies, oral submissions and examination of additional submissions made by the bank, RBI came to the conclusion that the allegations of non-compliance/contravention of the directions were substantiated and warranted imposition of monetary penalty, the central bank said. Said.
However, RBI said that imposition of penalty is based on 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.
Meanwhile, RBI has also imposed a fine of Rs 5 lakh on Alibaug Co-operative. Urban Bank Limited1 lakh on , Raigarh, and The Mahabaleshwar Urban Cooperative Bank Limited Bank, Mahabaleshwar, for regulatory compliance deficiencies.
Penalty has been imposed for “contravention/non-compliance” with certain provisions of the directions issued by RBI. These include ‘strengthening control of the payments ecosystem between sponsor banks and SCBs/UCBs as corporate customers’; ‘Cyber Security Framework in Banks’; and the ‘Reserve Bank of India (Financial Services to be Provided by Banks) Directions, 2016’.
These also include ‘Financial Inclusion-Access to Banking Services-Basic Savings Bank Deposit Account’; and ‘Fraud-Classification and Reporting’.
The RBI said that the statutory inspections for Supervisory Appraisal (ISE) of the bank were conducted with reference to the financial position as on March 31, 2017, (ISE 2017), March 31, 2018, (ISE 2018), and March 31, 2019. (ISE 2019).
Violation/compliance of instructions has been disclosed – investigation risk assessment report Related to ISE 2017, ISE 2018 and ISE 2019; Report of the investigation conducted by RBI in the background of the incident relating to fraud and related correspondence; and Incident Report submitted by the Bank in June 2020 relating to certain suspicious transactions and related correspondence.
Notice was issued to the bank to show cause as to why penalty should not be imposed on it for failure to comply with the directions.
After considering the bank’s replies, oral submissions and examination of additional submissions made by the bank, RBI came to the conclusion that the allegations of non-compliance/contravention of the directions were substantiated and warranted imposition of monetary penalty, the central bank said. Said.
However, RBI said that imposition of penalty is based on 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.
Meanwhile, RBI has also imposed a fine of Rs 5 lakh on Alibaug Co-operative. Urban Bank Limited1 lakh on , Raigarh, and The Mahabaleshwar Urban Cooperative Bank Limited Bank, Mahabaleshwar, for regulatory compliance deficiencies.
.