RBI has imposed a fine of Rs 5 crore on Axis Bank for violating certain provisions of its directions including Cyber Security Framework.
The Reserve Bank of India (RBI) has imposed a fine of Rs 5 crore on Axis Bank for violating certain provisions of its directions, including the Cyber Security Framework. The Reserve Bank gave this information. Penalty has been imposed for violation / non-compliance of certain provisions of the directions issued by RBI. These include strengthening of control of payment ecosystem between sponsor banks and SCBs/UCBs as corporate clients, cyber security framework in banks and Reserve Bank of India (Financial Services to be Provided by Banks) Directions, 2016.
These include financial inclusion – banking services facilitation – primary savings bank deposit accounts, and fraud – classification and reporting. The Reserve Bank said that the statutory inspection for Supervisory Appraisal (ISE) of the bank is based on the financial position as on March 31, 2017, (ISE 2017), March 31, 2018, (ISE 2018), and March 31, 2019 (ISE 2019). were done. Scrutiny of the Risk Assessment Reports relating to ISE 2017, ISE 2018 and ISE 2019 revealed the violation of the instructions.
Explain that the central bank often keeps levying fines on banks for not following the rules. A few days ago, RBI imposed monetary penalty on 14 banks including Bandhan Bank, Bank of Baroda and State Bank of India (SBI) for violating various rules. These 14 banks included public sector banks, private banks, foreign banks, cooperative banks and a small finance bank.
Authorized payment providers will also provide RTGS, NEFT facility
The Reserve Bank of India (RBI) has allowed authorized non-bank payment system providers (PSPs), including issuers of prepaid payment products, to be direct members in Centralized Payment Systems (CPS) such as Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). as approved to participate. PSP includes prepaid payment product (PPI) issuers, card networks, white label ATM (WLA) operators and trade receivable discounting system (TRADES).
RBI said in a notification that after a review of the existing arrangements and detailed consultations with PSPs, it is advised that in the first phase, authorized non-bank PSPs i.e. issuers of prepaid payment products, card networks, white label ATM operators will be eligible to participate as a member in the centralized payment system.
read this also-
Government’s big decision: 5 lakh insurance will be available on your money deposited in the bank, they will get the benefit
(with language input)