SC: UGC Regulations Override State Law on Forming Search Committees For University VC Appointments  ||  SC: State Cannot Deny Regularisation to Long-Serving Contract Staff Appointed Through Due Process  ||  Supreme Court: Patients Cannot Claim Unproven Medical Treatments as a Matter of Right  ||  SC: Polluting Company’s Turnover May Be Considered While Fixing Environmental Damage Compensation  ||  Delhi HC: Dacoity Convicts U/S 395 IPC Cannot Claim Benefit under the Probation of Offenders Act  ||  Bombay HC: An Adopted Child’s Caste is Considered the Same as That of the Adoptive Parents  ||  Calcutta High Court: 18-Month Delay in Delivering a Judgment Alone is Not Sufficient to Set it Aside  ||  Punjab & Haryana High Court: ED Can Arrest Individuals Even if FIRs are Added to the ECIR Later  ||  SC: Menstrual Health is a Fundamental Right under Article 21; Orders Free Sanitary Pads in Schools  ||  Supreme Court: Industrial Court is the Proper Forum to Decide Issues Relating to Contract Labour    

Reserve Bank of India imposes monetary penalty on SBM Bank (India) Ltd- (Reserve Bank of India) (16 Oct 2019)

MANU/RPRL/0190/2019

Banking

The Reserve Bank of India (RBI) has, by an order dated October 15, 2019, imposed a monetary penalty of Rs. 3 crore on SBM Bank (India) Ltd. for non-compliance by SBM Bank (Mauritius) Ltd. (amalgamated with SBM Bank (India) Ltd. on November 30, 2018) with certain provisions of directions issued by RBI on "Time-bound implementation and strengthening of SWIFT - related operational controls" and "Cyber Security Framework in Banks". This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the failure to adhere to the aforesaid directions issued by RBI.

This action is based on the 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.

Background

A scrutiny was carried out by RBI to examine the implementation of SWIFT related operational controls in SBM Bank (Mauritius) Ltd. at its Indian operations and it was observed that it had failed to comply with certain provisions of the aforesaid directions. Based on the findings of the scrutiny and taking into account that Indian undertaking of the said bank was amalgamated with SBM Bank (India) Ltd., a notice was issued to SBM Bank (India) Ltd. advising it to show cause as to why penalty should not be imposed for non-compliance with the directions. After considering the reply received from SBM Bank (India) Ltd., oral submissions made in the personal hearing, and examination of additional submissions, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were sustained and warranted imposition of monetary penalty.

Tags : PENALTY   IMPOSITION   SBM BANK  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved