The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 97.80 lakh (Rupees Ninety seven lakh eighty thousand only) on ICICI Bank Limited for non-compliance with certain directions issued by RBI on Cyber Security Framework in Banks, Know Your Customer (KYC), and Credit Card and Debit Card – Issuance and Conduct.
 |
| RBI Imposes Rs 97.8 lakh Penalty on ICICI Bank |
RBI Imposes ₹97.8 lakh Penalty on ICICI Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹97.80 lakh on ICICI Bank Limited for non-compliance with certain directions issued by RBI on Cyber Security Framework in Banks, Know Your Customer (KYC), and Credit Card and Debit Card – Issuance and Conduct.
Read Also: RBI Imposes Rs 31.8 lakh Penalty on Bank of Maharashtra
This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹29.60 lakh on Axis Bank.
RBI Imposes Penalty on ICICI Bank: Background
The Statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The bank failed to report a cyber security incident to RBI within the stipulated timeline;
- The bank failed to put into use a robust software for throwing alerts for certain categories of accounts;
- The bank failed to send credit card bills/statements to certain customers, but levied late payment charges.
The 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. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
About ICICI Bank
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.
In 1999, ICICI became the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the New York Stock Exchange.
About Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
Read Also: RBI signs Currency Swap Agreement with Maldives Monetary Authority
Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
Read Also: RBI appoints Aviral Jain as new Executive Director
Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to ICICI Bank for upcoming exams
- Founded: 5 January 1955
- Headquarters: Mumbai, Maharashtra, India (Corporate Headquarters); Vadodara, Gujarat, India (Registered Office)
- Part-time Chairman: Pradeep Kumar Sinha
- Managing Director & CEO: Sandeep Bakhshi
0 Comments