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RBI fines several banks

By IndianMandarins- 06 Mar 2019


The Reserve Bank of India has fined two public sector banks for non-compliance of directions on Swift messaging software. On Tuesday, Bank of Baroda was slapped a Rs 4 crore penalty and Canara Bank Rs 2 crore for delayed implementation of the Swift related operational controls.


Swift is the global messaging software used for transactions by the financial entities. It may be noted that the huge Rs 14,000 crore fraud at the Punjab National Bank was a case of misuse of this messaging software. Post the PNB fraud, which came to light in February 2018, the RBI has been tough on banks to tighten all kinds of transactions. The RBI had asked banks to take time-bound measures to strengthen internal controls to avoid fraud transaction.


Earlier today, the apex bank slapped Rs 1 crore fine on private sector lenders ICICI Bank and Yes Bank for non-compliance of directions on Swift.

Allahabad Bank was fined for non-compliance of RBI directions dated February 20, 2018, pertaining to the reconciliation of Nostro on a real-time basis with immediate effect, as per a BSE filing.


On Monday, the RBI had slapped a total monetary fine of Rs 8 crore on three banks- Karnataka Bank, United Bank of India and Karur Vysya Bank for not complying with the directions related to Swift.


Earlier on Saturday, four banks - State Bank of India (SBI), Union Bank of India, Dena Bank and IDBI - had informed stock exchanges about monetary penalty slapped on them by the RBI for non-compliance with various directions. A fine of Rs 3 crore was imposed on Union Bank, Rs 2 crore on Dena Bank, and Rs 1 crore each on IDBI and the SBI.

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