RBI Slaps Penalties Worth Rs.71 Crore On 36 Banks For Non-Compliance Of Swift Norms

By | April 25, 2019

The Reserve Bank on Friday said it has imposed penalties worth . 71 crore on 36 people, foreign and private banks to get non-compliance with assorted instructions on time-bound strengthening and implementation of both SWIFT operations.

SWIFT is a worldwide messaging program utilized for transactions by financial issues. The huge Rs. 14,000-crore fraud in the PNB was an instance of abuse of the messsaging computer software.

The penalties, which range from Rs. 1 crore into Rs. 4 crore, were enforced by orders dated January 31, 2019, and February 25, 2019, the RBI said in a statement.

It, Nevertheless, added that penalties are based on deficiencies in regulatory compliance and also”isn’t meant” to pronounce upon the validity of any transaction or arrangement entered into by the banks with their clients.

The RBI had completed a test of compliance with its instructions on strengthening and implementation of SWIFT-related operational controllers of 50 big banks.

The evaluation, the RBI said, shown that Banks hadn’t complied with one or more of the significant management pertaining to direct generation of payment messages from the SWIFT environment and introduction of an extra layer of acceptance for all payment messages exceeding a specific threshold, amongst others.

According About the findings of this evaluation and degree of non-compliance, finds (SCNs) were issued to 49 banks advising them to show cause as to why punishment shouldn’t be enforced for non-compliance with instructions.

“Later Thinking about the responses obtained by the banks, dental admissions made from the private hearings where hunted from the banks, and also evaluation of further submissions, if any, RBI chose to impose financial penalty on previous 36 banks, dependent on the magnitude of non-compliance in every lender,” the central bank said.
Penalty of Rs. 4 crore every was levied on Bank of Baroda, Catholic Syrian Bank, Citibank N.A., Indian Bank and Karnataka Bank.The amount will be Rs. Two crore each in the event of Allahabad Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Dena Bank, Jammu & Kashmir Bank, Asian Bank of
1 crore every has bene slapped on Bank of America, Barclays Bank Plc,
Also Rs. 1 crore each punishment has been levied on IndusInd Bank, JP Morgan Chase Bank, Karur Vysya Bank, Punjab & Sind Bank, Standard Chartered Bank, State Bank of India, Tamilnad Mercantile Bank and also YES Bank.