AP Mahesh Co-operative Urban Bank Limited has been slapped with a penalty of ₹65 lakh by the Reserve Bank of India for violating various rules that led to a hacker gaining access to bank systems causing a loss of ₹12.48 crore.
As per RBI’s release dated June 19, the monetary penalty on AP Mahesh Co-operative Urban Bank Limited was for non-compliance with directions on ‘Basic Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs), ‘Comprehensive Cyber Security Framework for Primary (Urban) Cooperative Banks (UCBs) - A Graded Approach’ and ‘Internet Banking Facility for Customers of Cooperative Banks’. The penalty was as per provisions under the Banking Regulation Act, 1949.
The Hyderabad city police disclosing the development on Saturday said it was an unprecedent move by the apex bank.
