The RBI has fined 36 public and private banks Rs 71 crore for not adopting its safety
directions on SWIFT. The SWIFT messaging software is used for transactions by financial institutions. However, SWIFT is not without cons. PNB’s Rs 14,000 crore fraud was done conning SWIFT.
The banks fined include Bank of Baroda, City Union Bank, HSBC, ICICI Bank, SBI and YES Bank. Penalties imposed range from ranging from Rs 1 crore to Rs 4 crore, were imposed by orders dated January 31, 2019, and February 25, 2019, the RBI said in a statement.
RBI had assessed the compliance of its directive that mandates the implementation of SWIFT in 50 major banks.
The evaluation proved that banks discarded one or more directive that pertained the direction of creating payment messages in the SWIFT environment. 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 monetary penalty on aforementioned 36 banks, based on the extent of non- compliance in each bank.”
Rs 3 crore is imposed on BNP Paribas, City Union Bank, Indian Overseas Bank, UCO Bank, Union Bank of India, and United Bank of India. Penalty of Rs 4 crore has been imposed for 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. Penalty of Rs 1 crore each is imposed 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.