RBI conducted a statutory inspection of the bank’s books and its inspection report revealed that Standard Chartered had failed to credit the amount involved in unauthorized electronic transactions back to the customer’s accounts. The regulator’s inspection also revealed that the bank was not reporting cyber security incidents within the stipulated time period.
The RBI, which conducted a statutory audit of the bank’s books, found that the foreign lender was also non-compliant in authorizing direct selling agents to conduct KYC verification, and the integrity and integrity of the data presented in the central repository of information on large credit Failed to ensure quality. (CRILC).
“A notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of the directions,” the RBI said. “After considering the bank’s responses to the notice, oral submissions made during the personal hearing and additional submissions made by the bank, RBI came to the conclusion that the allegation of contravention was substantiated and warranted imposition of monetary penalty on the bank. Was.”