RBI imposes Rs 2 crore fine on PNB for flouting SWIFT rules

The Reserve Bank of India (RBI) has fined Punjab National Bank (PNB) Rs 2 crore after finding it in violation of compliance with regulatory directions regarding SWIFT operations, the bank said Tuesday.

The state-run lender in a regulatory filing said the RBI informed the bank about the penalty in a letter dated March 25. "In the matter of violations of regulatory directions by Punjab National Bank observed during assessment of implementation of SWIFT- related operational controls, the Reserve Bank of India, (imposes) an aggregate penalty of Rs 20 million... on Punjab National Bank," PNB said.

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.

Earlier this month, the central bank 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.

Four banks - SBI, Union Bank of India, Dena Bank and IDBI - had also 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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Edited by Manali