RBI penalises Standard Chartered Rs 1.95 cr for gaps in customer protection

Regulator found that bank did not credit amounts involved in unauthorised electronic transactions (shadow reversal) and did not report cyber security cases within prescribed time

The Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs 1.95 crore on Standard Chartered Bank for not complying with various directions issued by the central bank with regard to ‘customer protection’, ‘cyber security framework in banks’, ‘credit card operations of banks, and ‘creation of a central repository of large common exposures'.

“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 central bank said in a statement.

Upon carrying out a statutory