RBI imposes Rs 2 crore monetary penalty on Standard Chartered Bank

This pertains to directions contained in frauds classification and reporting rule by commercial banks, the RBI said.

The Reserve Bank of India (RBI) on January 21 imposed a monetary penalty of Rs 2 crore on Standard Chartered Bank for non-compliance with certain directions issued by the central bank.

This pertains to directions contained in frauds classification and reporting rule by commercial banks, the RBI said.

“The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949, for delays in reporting of frauds to RBI, revealed during the statutory inspection of the bank with reference to its financial position as on March 31, 2018 and March 31, 2019,” the RBI said.

A notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for such non-compliance with the directions, the RBI said.

“After considering the bank’s reply to the notice and oral submissions made in the personal hearing, RBI concluded that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” the RBI said.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said.