RBI slaps Rs 1 crore fine on Yes Bank for non-compliance in Swift operations

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Published: March 5, 2019 10:46:14 AM

Private sector lender Yes Bank Tuesday said the Reserve Bank of India has slapped a fine of Rs 1 crore on the bank for non-compliance of directions on Swift messaging software.

RBI slaps Rs 1 cr fine on Yes Bank for non-compliance in Swift operationsRBI slaps Rs 1 cr fine on Yes Bank for non-compliance in Swift operations

Private sector lender Yes Bank Tuesday said the Reserve Bank of India has slapped a fine of Rs 1 crore on the bank for non-compliance of directions on Swift messaging software.

“The Reserve Bank of India (RBI)… has levied an aggregate penalty of Rs 10 million (Rs 1 crore) on the bank for non-compliance of regulatory directions observed during assessment of implementation of SWIFT-related operational controls,” Yes Bank said in a regulatory filing.

Swift is the global messaging software used for transactions by the financial entities.

Notably, the massive Rs 14,000 crore fraud at the Punjab National Bank (PNB) was a case of misuse of this messsaging software.

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Post the PNB fraud, which came to light in February 2018, the RBI has been tough on banks to tighten all kinds of transactions.

On Monday, RBI had imposed a total monetary fine of Rs 8 crore on three banks – Karnataka Bank, United Bank of India and Karur Vysya Bank – for non-compliance of directions on Swift messaging software.

Earlier on Saturday, four banks — SBI, Union Bank of India, Dena Bank and IDBI — had informed exchanges about monetary penalty slapped on them by the regulator for non-compliance with various directions.

Fine of Rs 3 crore was imposed on Union Bank, Rs 2 crore on Dena Bank, and Rs 1 crore each on IDBI and the SBI.

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