The Reserve Bank of India (RBI) on Friday imposed a penalty of Rs 25 lakh on Punjab and Sind Bank for non-compliance with certain provisions of directions on ‘Cyber Security Framework in Banks’. The state-owned bank had reported a few cyber incidents to the RBI on May 16 and 20, 2020, the central bank said while giving details.
“Examination of the incident reports and the report of the forensic analysis of the said incidents revealed, non-compliance with aforesaid directions,” it said.
The RBI issued a show-cause notice to the bank.
“After considering the bank’s reply to the show-cause notice, oral submissions made during the personal hearing and examination of further clarifications/ documents furnished by the bank, RBI came to the conclusion that to the extent the charges of non-compliance with RBI directions were substantiated, it warranted imposition of monetary penalty,” the central bank said.
Meanwhile, a penalty of Rs 1 lakh on the Nagar Sahkari Bank Limited, Etawah for contravention of certain regulations, including the one on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’.
In both cases, the RBI said the penalty 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 them with their customers.