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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹10,000 on The Manjeri Co-operative Urban Bank Ltd., Malappuram District for non-compliance with directions on customer protection in unauthorised electronic banking transactions and the cyber security framework for urban co-operative banks.
The action follows a cyber security incident reported by the bank, which revealed lapses in the bank’s mobile banking application security during an Information Technology Examination (ITE) conducted by RBI.
RBI noted that the bank had not fully implemented the prescribed cyber security measures and had deficiencies in protecting customers from unauthorised electronic banking transactions. A show-cause notice was issued, and after reviewing the bank’s response and oral submissions, RBI concluded that the non-compliance was substantiated, warranting the imposition of the penalty.
This measure highlights RBI’s commitment to safeguarding digital banking channels and ensuring robust cyber security practices in co-operative banks across the country.
[RBI]