RBI levies Rs 1 crore penalty on Yes Bank for non-compliance of instructions related to Swift

The Reserve Bank of India Tuesday slapped Rs 1 crore fine on Yes Bank for non-compliance of directions on Swift messaging software.

The private sector lender in a regulatory filing said, "The Reserve Bank of India (RBI) has levied an aggregate penalty of Rs 10 million (Rs 1 crore) on the bank for non-compliance of regulatory directions observed during assessment of implementation of SWIFT-related operational controls."

Swift is a global messaging software used for transactions by financial entities. The fine comes in the backdrop of the massive Rs 14,000 crore fraud at the Punjab National Bank (PNB) owing to the misuse of this messaging software.

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Post the PNB fraud last year, the RBI has been tough on banks to tighten all kinds of transactions.

The central bank Monday 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 on Swift messaging software.

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 RBI for non-compliance with various directions.

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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(With inputs from agency)