RBI Imposes Rs2.66 Crore Penalty On Bank Of Bahrain & Kuwait BSC
Moneylife Digital Team 20 December 2022
The Reserve Bank on Monday (RBI) said it has imposed a penalty of Rs2.66 crore on Bank of Bahrain & Kuwait BSC, India operations for non-compliance with directions on cyber security framework. The bank failed to implement systems to detect unusual and unauthorised, internal or external activities in its database, RBI said in its statement.
 
Bank of Bahrain & Kuwait BSC also failed to implement security operations centre for obtaining real-time/ near-real time information and insight into the security posture of the bank, and enable audit logs for database and operating system of servers, among others, as per the banking regulator’s statement.
 
A notice was issued to the bank asking it to show cause as to why penalty should not be imposed on it for failure to comply with the directions issued by RBI.
 
"After considering the bank's reply to the notice, oral submissions made during personal hearing and additional submissions made by it, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI direction was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions," the central bank said.
  
RBI also said the penalty 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. 
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