New Delhi, March 4 (PTI): The Reserve Bank of India has imposed a total monetary fine of INR 8 crore on three banks - Karnataka Bank, United Bank of India and KarurVysya Bank - for non-compliance of directions on Swift messaging software.
While the RBI imposed aINR 4 crore fine on Karnataka Bank, United Bank is facing a penalty of INR 3 crore. The regulator has levied INR one crore fine on KarurVysya Bank.
The RBI has levied an aggregate penalty of INR 40 million on the bank for delayed implementation of four of the Swift related operational controls, Karnataka Bank said in a regulatory filing.
"The exchanges are hereby informed that Reserve Bank of India..., has imposed an aggregate penalty of INR 30 million on the Bank to be deposited within 14 days, for non-compliance with, and contraventions of, directions contained in the RBI circular on time-bound implementation and strengthening of SWIFT-related operational controls," United Bank said in a separate filing.
KarurVysya said that the RBI has imposed a monetary penalty of INR 1 crore on the bank for non-compliance with the directions issued on Swift operations.
Swift is the global messaging software used for transactions by the financial entities. The massive INR 14,000 crorefraud at the PNB was a case of misuse of this messsaging software.
Post the PNB fraud, which came to light in February 2018, the RBI has been tough on banks to tighten all kind of their transactions.
Earlier on Saturday, four banks -- SBI, Union Bank of India, Dena Bank and IDBI -- had informed exchanges about monetary penalty slapped on them by the regulator for non-compliance with various directions.
Fine of INR 3 crore was imposed on Union Bank, INR 2 crore on Dena Bank, and INR 1 crore each on IDBI and the SBI.
