RBI imposed a fine of Rs 1 crore on SBI and Rs 1.95 crore on Standard Chartered Bank, know why
RBI took action on SBI and Standard Chartered for violating several guidelines.
New Delhi:
The Reserve Bank of India (RBI) on Monday imposed a fine of Rs 1 crore on the country’s largest bank State Bank of India (SBI) and Rs 1.95 crore on Standard Chartered Bank for violating various guidelines. In a statement, RBI said that SBI has been fined for non-compliance with the directions contained in the ‘Reserve Bank of India (Frauds by Commercial Banks and Selected Financial Institutions – Classification and Reporting) Directions 2016’.
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The central bank said in a separate statement that ‘Customer Protection – Limited Liability of Customers in Unauthorized Electronic Banking Transactions’, ‘Cyber Security Framework in Banks’, ‘Credit Card Operations of Banks’ and ‘Code of Conduct in Outsourcing of Financial Services by Banks’ ‘But a penalty of Rs 1.95 crore was imposed on Standard Chartered Bank for non-compliance with the directions issued by RBI. This monetary penalty has been imposed in exercise of the powers vested in RBI under the Banking Regulation Act, 1949.
Axis Bank was also fined Rs 25 lakh
RBI In September, Axis Bank Ltd. But he was fined Rs 25 lakh for violating certain provisions of Know Your Customer (KYC). The central bank had said that during February and March, 2020, the account of an Axis Bank customer was verified. During investigation, it was found that the bank failed to comply with the provisions contained in the RBI’s KYC Directions, 2016.
According to the statement, the bank failed to conduct due diligence with respect to the account concerned. Due to this the bank could not ensure that the transactions in the customer’s account are commensurate with his business and risk profile. RBI has given notice to the bank in this regard. After considering the reply to the notice and the oral explanation, it was decided to impose the fine.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)