Reserve Bank of India imposes monetary penalty on Standard Chartered Bank – India

Case Brief

RBI imposed a monetary penalty of Rs 1.95 crore on Standard Chartered Bank - India by order dated October 18, 2021. The penalty was imposed for non-compliance with RBI directions on customer protection in unauthorised electronic banking transactions, cyber security framework, credit card operations and outsourcing controls, and CRILC-related reporting requirements. RBI said the inspection revealed failures such as non-credit of amounts involved in unauthorised transactions, delayed reporting of a cyber security incident, allowing outsourced direct sales agents to conduct KYC verification, and poor integrity/quality of CRILC data submitted by the bank. RBI clarified that the penalty was based on regulatory compliance deficiencies and did not pronounce on the validity of any transaction or agreement with customers.