The Reserve Bank on Friday claimed it has imposed penalty charges worthy of Rs 71 crore on 36 public, private and foreign banks for non-compliance with various directions on time-bound execution and strengthening of SWIFT operations.
SWIFT is a global messaging software used for transactions by financial entities. The massive Rs 14,000-crore fraud at the PNB was a case of improper use of this messaging software.
The banks include, Bank of Baroda, City Union Bank, HSBC, ICICI Bank, SBI and YES Bank.
The penalty charges, ranging from Rs 1 crore to Rs 4 crore, were enforced by orders dated January 31, 2019, and February 25, 2019, the RBI stated in a statement.
But, included that penalties are depending on inadequacies in regulatory compliance and “is not intended” to pronounce upon the authenticity of any transaction or contract entered into by the banks with their clients.
The RBI had performed an evaluation of compliance with its directions on execution and strengthening of SWIFT-related operational controls of 50 major banks.
Penalty of Rs 4 crore each has been enforced on Bank of Baroda, Catholic Syrian Bank, Citibank N.A., Indian Bank and Karnataka Bank.
The penalty on BNP Paribas, City Union Bank, Indian Overseas Bank, UCO Bank, Union Bank of India, and United Bank of India, is Rs 3 crore each.
The amount is Rs 2 crore each in the event of Allahabad Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Dena Bank, Jammu & Kashmir Bank, Oriental Bank of Commerce, and Syndicate Bank.
Penalty of Rs 1 crore each has bene 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.
Also Rs 1 crore each penalty has been enforced on IndusInd Bank, JP Morgan Chase Bank, Karur Vysya Bank, Punjab & Sind Bank, Standard Chartered Bank, State Bank of India, Tamilnad Mercantile Bank and YES Bank.