The Reserve Bank of India on Friday fined Punjab and Sind Bank a fine of Rs 25 lakh for failing to comply with
certain provisions of the “Cyber Security Framework in Banks” instructions.
The state bank reported some cyber incidents to the RBI on May 16 and 20, 2020, the central bank said.
“An examination of the incident reports and the forensic analysis report of these incidents revealed that the above instructions were not followed,” he said. For this a show case notice was issued by the RBI to the bank.
“After considering the reaction of the bank to the communication of the main cause, the oral statements in the context of the personal hearing and the examination of the clarifications / supplementary documents submitted by the bank, the RBI came to the conclusion that, insofar as the compliance with the instructions of the RBI were justified justified the imposition of a monetary sanction, ”said the central bank.
Meanwhile, Nagar Sahkari Bank Limited, Etawah, has been fined Rs 1 lakh for violating certain regulations, including those relating to “Revenue Recognition, Asset Classification, Provisions and Other Related Matters – UCB”.
In both cases, RBI said the sanction was based on failure to comply with regulations and was not intended to determine the validity of any transaction or agreement it has entered into with its customers.