The Reserve Bank Of India said it has charged penalties on 36 public, private and foreign bank domains for non-compliance with different implementation and hardening of SWIFT operations.
SWIFT is a software to track transactions by financial entities. The misuse of this software caused Rs. 14000 crore damaging fraud to PNB. The banks include in non-compliance category are Bank of Baroda, City Union Bank, HSBC, ICICI Bank, SBI and YES Bank.
The central bank said, “After considering the replies received from the banks, oral submissions made in the personal hearings where sought by the banks, and examination of additional submissions, if any, RBI decided to impose a monetary penalty on the aforementioned 36 banks, based on the extent of non-compliance in each bank.”
The penalty of Rs 4 crore each has been imposed on Bank of Baroda, Catholic Syrian Bank, Citibank N.A., Indian Bank and Karnataka Bank. The amount is Rs 2 crore each in case of Allahabad Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Dena Bank, Jammu & Kashmir Bank, Oriental Bank of Commerce, and Syndicate Bank.
The penalty of Rs 1 crore each has been slapped on Bank of America, Barclays Bank Plc, Central Bank of India, Corporation Bank, DBS Bank, Deutsche Bank A.G., HSBC, ICICI Bank, and IDBI Bank.
Read EquityPandit’s Nifty Bank Outlook for the Week