The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on Indian Bank for violating cybersecurity guidelines.
In its order issued on November 30, 2018, RBI imposed a monetary penalty of Rs 10 million on Indian Bank for violating of circular on Cybersecurity Framework in banks, said the central bank in its official communique.
The breach is made in regard to RBI’s directions on Frauds – Classification and Reporting by Commercial Banks.
“This penalty has been imposed in the exercise of powers vested in RBI under the provisions of… the Banking Regulation Act, 1949 taking into account the failure of the bank to adhere to the aforesaid guidelines and directions issued by RBI,” said RBI.
RBI said that its action is based on the inadequacies 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.