The Reserve Bank of India (RBI) has slapped fine on seven more commercial banks for not adhering to regulatory directions relating to global messaging platform, Swift.
Private sector lenders ICICI Bank and Yes Bank has been slapped with a penalty of Rs 1 crore each while four public sector lenders, Canara Bank, Syndicate Bank, Allahabad Bank and Bank of Maharashtra faced a penalty of Rs 2 crore each. Bank of Baroda has faced a penalty of Rs 4 crore.
In all, 18 banks have been penalised for violating norms related to RBI circular issued on February 20, 2018 - in the aftermath of the Nirav Modi scam that defrauded Punjab National Bank of Rs 14,000 crore.
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Over the last few days, RBI had fined 11 banks for delayed implementation of Swift related operational controls. Seven banks disclosed the exchanges about the RBI penalty on them on Monday while the other four disclosed on Saturday.
Swift is the global messaging software used for transactions by the financial entities.
Following the Rs 14,000 crore fraud in state-run lender PNB, RBI has directed banks on time bound implementation and strengthening of Swift related operational controls in a circular dated February 20, 2018.
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