RBI slaps Rs2 cr penalty on PNB for violating SWIFT norms
26 March 2019
Reserve Bank of India (RBI) has slapped a penalty of Rs2 crore on Punjab National Bank (PNB) for non-compliance of regulations with regard to SWIFT operations, the state-run lender said on Tuesday.
SWIFT is a global messaging software used for transactions by financial entities. The massive Rs14,000-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, PNB said the Reserve Bank informed the bank about the penalty in a letter dated 25 March.
"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 Rs20 million ... on Punjab National Bank," it said.
Earlier this year, the Reserve Bank had imposed penalties worth Rs71 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 Bank, HSBC, Bank of Baroda, Citibank, Canara Bank and Yes Bank.