India’s central bank, the Reserve Bank of India (RBI), has imposed a fine of Rs 1 crore on Indian Bank, for flouting cyber security norms, as reported by Financial Express (FE). The bank is a PSB (Public Sector Bank), based out of Chennai, Tamil Nadu.
“This penalty has been imposed in 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,” an RBI statement noted. The bank had violated the regulations mentioned in the Circular on Cyber Security Framework for banks.
“This action is based on 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 release added.
To improve the preparedness of Indian banks to counter cyber attacks, the RBI is reportedly working on enhancing security mechanisms. This comes at a time when Indian consumers are increasingly adopting digital transactions.
According to a new study, Indian companies lost about half a million US dollars due to cyber attacks over a period of 18 months.
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