Operational Negligence
- Wrongful dishonor of cheques.
- Delays in fund transfers.
- Mismanagement of accounts.
- Failure in record keeping.
- Ignoring KYC obligations.
Security Negligence
- Allowing fraudulent withdrawals.
- Poor cybersecurity safeguards.
- Mishandling customer data.
- Unauthorized disclosure.
- Failure to prevent hacking.
Advisory Negligence
- Mis-selling financial products.
- Wrongful investment advice.
- Ignoring risk disclosures.
- Breach of fiduciary duty.
- Non-disclosure of terms.
Compliance Negligence
- Violation of RBI norms.
- Ignoring regulatory reporting.
- Failure to detect suspicious activity.
- Breach of AML rules.
- Non-adherence to capital norms.
Legal Consequences
- Liability for damages.
- Compensation to customers.
- Disciplinary actions by regulators.
- Criminal liability in serious cases.
- Loss of license in extreme cases.
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