The central bank on 21st January 2021 has decided to impose a monetary policy of Rs 2 crore on Standard Chartered Bank for non-compliance with particular directions issued.
The RBI said that these concerns directions included in frauds classification and reporting rule by commercial banks.
It 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, released during the statutory inspection of the bank with reference to its financial position as on 31st March 2018 and 31st March 2019.”
A notice was sent to the bank advising it to bring forth cause as to why the penalty should not be imposed on it for this non-compliance with the directions, said RBI.
The RBI added, “After considering the bank’s reply to the notice and oral submissions made in the personal hearing, RBI conducted that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary policy.”
This action is caused by deficiencies in regulatory compliance and it is not deliberated to define the validity of any transactions or agreement that has entered into by the bank with its customers, said the RBI.