Banking on Trust: Standard Chartered India Refutes Rumors, Pledges Transparency and Compliance

Standard Chartered India flatly rejected recent "speculative and inaccurate" reports of failures in its derivative sales practices and risk controls, as RBI regulatory testing is reported. The lender pointed out that it only sells structured products to eligible client segments and maintains the highest compliance, transparency, and customer orientation.

 

Key Highlights:

RBI Scrutiny Context:

The Reserve Bank of India is currently looking at Standard Chartered's actions after the bank was accused of selling complex derivative products, in this case, target redemption forwards, to small and medium-sized businesses (SMEs). The products have the potential to inflict huge losses if the purchasers do not comprehend them.

 

Bank Response:

Standard Chartered India spokesperson clarified that RBI inspection is a part of its annual routine review of every Indian bank. The bank clarified that any regulatory observations are addressed as a routine procedure and that there is no indication of formal enforcement action as of now.

 

Eligibility and Risk Controls:

The bank assured that structured products are only sold to customers with strict eligibility criteria, to have risk profiles and product appropriateness extensively evaluated prior to sale.

 

Commitment to Compliance:

Standard Chartered highlighted its long-standing commitment towards compliance, transparency, and customer-centric practices, with a specific mention of its 165-year history in India and robust governance frameworks.

 

No Public Enforcement Yet: Despite the fact that the RBI has not yet imposed, no public enforcement action or penalty has been imposed on Standard Chartered India till date. 

 

Source: Economic Times, Outlook Business, ABP Live