RBI Hits Rs 2 Crore Penalty On PNB For Breaking SWIFT Norms

In a regulatory filing, the PNB said the RBI has informed the bank about the Rs 2 crore penalty.


Source: The Economic Times

NEW DELHI: The RBI has slapped a penalty of Rs 2 crore on Punjab National BankNSE 2.44 % (PNB) for non-compliance of regulatory directions with regard to SWIFT operations, the state-run lender said Tuesday.

SWIFT is a global messaging software used for transactions by financial entities. The massive Rs 14,000-crore fraud perpetrated by billionaire jeweller Nirav Modi and his uncle Mehul Choksi at the PNB was a case of misuse of this messsaging software.

In a regulatory filing, the PNB said the Reserve Bank in a letter dated March 25 has informed the bank about the penalty.

“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,” it said.

Earlier this year, the Reserve Bank had imposed penalties worth Rs 71 crore on 36 public, private and foreign banks for non-compliance with various directions on time-bound implementation and strengthening of SWIFT operations. However, the list did not include PNB.

The major banks which were fined by the regulator included SBI, ICICI BankNSE 2.76 %, HSBC, Bank of Baroda, Citibank, Canara BankNSE 4.07 % and Yes Bank.

Categories: Finance and Banking

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