MUMBAI: The Reserve Bank on Monday said it has imposed a penalty of Rs 2.66 crore on Bank of Bahrain and Kuwait BSC, India Operations for non-compliance with directions on cyber security framework.
The Reserve Bank of India (RBI) also imposed penalties on 20 cooperative banks, including 17 in Gujarat, for violation of various norms.
In a statement, RBI said that Bank of Bahrain & Kuwait BSC, India Operations failed to implement systems to detect unusual and unauthorized, internal or external activities in its database.
According to the statement, it also failed to implement the Security Operations Center to obtain real-time/near-real-time information and insights into the security status of the bank, and enable audit logs for the operating systems of databases and servers. failed to do either.
A notice was issued to the bank asking why penalty should not be imposed on it for failing to comply with the directions issued by the RBI.
“After considering the bank’s reply to the notice, oral submissions made during the personal hearing and additional submissions made by it, RBI comes to the conclusion that the allegation of non-compliance with the aforesaid directions of RBI is substantiated and imposes monetary penalty gone, to the extent of non-compliance of such directions,” it said.
The Bassein Catholic Co-operative Bank, Vasai (Maharashtra) apart from the Co-operative Banks of Gujarat; 30.85 lakh at Delhi State Co-operative Bank, New Delhi; and Rs 26,91,330 on Andhra Pradesh State Co-operative Bank, Vijayawada.
The fine on 17 co-operative banks ranges between Rs 50,000 and Rs 7 lakh.
In each case, the RBI said the 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 banks with their customers.