RBI imposes ₹30 lakh penalty on Standard Chartered Bank; ₹1 cr fine on 4 credit bureaus

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹30 lakh on Standard Chartered Bank-India for non-compliance with provisions of its Know Your Customer (KYC) directions. The RBI has said the 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”.

The RBI conducted an inspection of the bank with reference to its financial position as on March 31, 2021. The examination revealed the bank allotted "multiple customer identification code" to some of its individual customers. Consequently, a notice was issued, and considering the bank’s reply, the RBI imposed a monetary penalty on the bank for non-compliance with its directions.

The central bank has also penalised all four credit bureaus for different violations, including inadequate maintenance of accurate credit information. The RBI has imposed a collective penalty ₹1 crore on them.

The apex bank imposed a monetary penalty worth ₹24.75 lakh on Experian Credit Information Company of India Private Limited, Mumbai, for non-compliance with certain provisions of the Credit Information Companies (Regulation) Act, 2005.

The RBI says in its probe, it found that certain data relating to the credit information maintained by the company was not "accurate and complete". After sending a show-cause notice to the company, and considering its reply, the RBI penalised it with ₹24.75 lakh fine.

The apex bank fined TransUnion CIBIL Limited with a monetary penalty of ₹26 lakh for non-compliance with certain provisions of the Credit Information Companies (Regulation) Act, 2005. In its probe, the RBI found that certain data relating to the credit information maintained by the company was not accurate and complete.

Also, on receipt of complaints from some borrowers, the company had neither updated the credit information relating to them nor informed them regarding the steps taken by it for correction of discrepancies, and also the reasons for its inability to comply with the timeframe for providing correct information, within 30 days of receipt of such complaints.

Another penalty worth ₹24.25 lakh was imposed on Equifax Credit Information Services Private Limited, Mumbai, for non-compliance with CIC Rules. The statutory inspection of the company found similar violations by Equifax as TransUnion. CRIF High Mark Credit Information Services Private Limited, Mumbai, also received a penalty worth ₹25.75 lakh for non-compliance with CICI provisions.

In addition to this, the central bank also imposed penalties on seven co-operative banks, including UP Co-operative Bank Limited, Lucknow, Ujjain Nagarik Sahakari Bank Maryadit, Ujjain, MP, Panihati Co-operative Bank Ltd, The Berhampur Co-operative Urban Bank Ltd., Odisha, Solapur Siddheshwar Sahakari Bank Limited, Solapur (Maharashtra), The Uttarpara Co-operative Bank Ltd., West Bengal, and Textile Traders Co-operative Bank Ltd., Ahmedabad (Gujarat).