The Reserve Bank of India (RBI) on July 2 imposed a monetary penalty of Rs 25 lakh on Punjab and Sind Bank for non-compliance with certain provisions of directions issued by the RBI on ‘Cyber Security Framework in Banks’ dated June 2, 2016.
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.
The bank had reported a few cyber incidents to the RBI on May 16 and May 20, 2020, the central bank said.
"Examination of the incident reports and the report of the forensic analysis of the said incidents, revealed, non-compliance with aforesaid directions. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions issued by RBI, as stated therein," the RBI said.
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, the 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.
Source:moneycontrol.com