RBI imposed a fine of lakhs on these two banks, accused of violating cyber security and other rules

RBI imposed penalty

The Reserve Bank of India (RBI) has imposed a fine of Rs 25 lakh on Punjab and Sind Bank for violating the rules related to cyber security. According to RBI, the bank has not complied with the Cyber ​​Security Framework norms. This government-owned bank was informed about some cyber incidents on May 16 and May 20, 2020, yet it was negligent. That is why this action has been taken. A show cause notice was also issued to the bank in this regard.

The reply given by the bank to the notice was not found satisfactory by the RBI. RBI said, “Examination of the aforesaid incident report and forensic analysis report of the incidents revealed that the bank did not comply with the instructions laid down earlier. The clarifications/documents furnished by the bank in response to the show cause notice were not sufficient. After investigation, it was found that there has been a violation of the instructions, so there is a need to impose a financial penalty.

This bank was also fined

RBI also took action against Municipal Cooperative Bank Ltd of Etawah for violation of rules like recognition of income, classification of assets, provisioning, UCB etc. A fine of Rs 1 lakh has been imposed on the bank. The Reserve Bank said that in both the cases the penalty has been imposed due to irregularities in regulatory compliance.

Ban on PMC Bank extended

The Reserve Bank of India (RBI) on Friday extended the restrictions on Punjab and Maharashtra Co-operative Bank (PMC Bank) from July 1, 2021 to December 31, 2021. RBI said that the instructions have been extended keeping in mind the time required to complete the reconstruction of PMC Bank.

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