The Reserve Bank of India has imposed a penalty of Rs 2 crore on Standard Chartered Bank-India for delays in reporting of frauds to it.

The monetary penalty has been imposed on the bank for non-compliance with certain directions contained in the 'Reserve Bank of India (Frauds - Classification and Reporting by commercial banks and select FIs) Directions 2016'.

"The penalty has been imposed... for delays in reporting of frauds to RBI, revealed during the statutory inspection of the bank with reference to its financial position as on March 31, 2018 and March 31, 2019," RBI said in a statement.

Standard Chartered Bank-India was served a notice advising it to show cause as to why penalty should not be imposed on it for such non-compliance with the directions.

"After considering the bank's reply to the notice and oral submissions made in the personal hearing, RBI concluded that the charge of non-compliance with aforesaid RBI directions was substantiated and warranted imposition of monetary penalty," the statement said.

The central bank also noted that its action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.