As we have stated in RBI’s only press statement on this case to date, this was essentially an operational failure at our second largest public sector bank. The RBI will undertake actions against the bank that it is empowered to but this set is limited under its BR Act powers over PSBs.
Under the Payment Systems (REGULATION) Act 1998, any standards or access regimes that the Bank might propose to apply cannot be implemented without appropriate public consultation. In the case of the current review, the process of consultation and debate has been particularly extensive.