Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹10 lakh on Union Bank of India on July 09, 2019. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) and Section 51(1) of the Banking Regulation Act, 1949 for non-compliance with RBI directions on cyber security framework in banks. RBI said the bank’s cyber security framework was examined after reports of seven fraudulent messages of total value USD 171 million were generated through SWIFT in 2016, and the examination revealed several deficiencies. After a show-cause notice, the bank’s reply, and personal hearing submissions were considered, RBI imposed the penalty based on the extent of non-compliance and the corrective action taken.