RBI Penalizes SBI and Standard Chartered Bank for Non-Compliance

27 Jun 2023 , 01:58 AM

The Reserve Bank of India (RBI) has fined the State Bank of India (SBI) with a penalty of Rs 1 crore and Standard Chartered Bank India with a penalty of Rs 1.95 crore.

• SBI Faces Penalty for Failing to Comply with RBI’s Directions on Fraud Classification and Reporting
• Standard Chartered Bank Penalized for Breaching RBI’s Guidelines on Customer Protection, Cyber Security, Credit Card Operations, and Financial Services Outsourcing

The RBI had issued separate notices to both banks, asking them to justify why penalties should not be imposed. After reviewing the replies, oral submissions, and additional submissions from the banks, the RBI concluded that non-compliance with various norms was substantiated.

The monetary penalties were imposed based on the extent of non-compliance with the aforementioned directions. The RBI exercised its powers under the Banking Regulation Act 1949 to impose the penalties.

The RBI clarified that the action was taken to address deficiencies in regulatory compliance and does not question the validity of any transactions or agreements between the banks and their customers.

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