The Reserve Bank of India (RBI) has, imposed a monetary penalty of Rs 2 Crore on Standard Chartered Bank–India for non-compliance with certain directions under “Reserve Bank of India (Frauds – Classification and Reporting by commercial banks and select FIs) Directions 2016”.
RBI had issued a notice to the bank advising it to show cause for such non-compliance with the directions. 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 accordingly warranted imposition of monetary penalty.
However, 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.
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