RBI Fines Four More Banks For Non-Compliance With Swift Directions
A man stands below a hoarding of Yes Bank outside one of its branches in Mumbai. (Photograph: Dhiraj Singh/Bloomberg)

RBI Fines Four More Banks For Non-Compliance With Swift Directions


Total five banks faced a penalty of Rs 10 crore from the Reserve Bank of India for non-compliance with various directions.

Bank of Baroda, ICICI Bank Ltd., Yes Bank Ltd. and Canara Bank have been penalised by the central bank for not complying with directions on global transaction messaging software Swift, according to regulatory filings by the lenders.

Allahabad Bank was fined for non-compliance of directions with regard to Nostro accounts. A Nostro account is an account that a bank holds in a foreign currency in another bank.

State-owned lender Bank of Baroda was fined Rs 4 crore, while Canara Bank and Allahabad Bank faced a penalty of Rs 2 crore each, the filings said.

The amount of penalty is not material considering the size of the bank, and necessary measures for compliance with the said RBI directions have been taken, Allahabad Bank said in its filing.

ICICI Bank was fined Rs 1 crore for the delay in compliance with directions related to Swift, the lender informed the exchanges. Yes Bank in a filing said a penalty of Rs 1 crore was imposed on it by the RBI for non-compliance to directions on Swift.

The RBI has directed lenders to strictly adhere to directions on the Swift system as Punjab National Bank was hit by a massive Rs 14,000-crore fraud due to the misuse of the technology platform. On Monday, six public and private sectors lenders were penalised with a collective fine of Rs 17 crore for delay in implementation of directions with regard to Swift operations.

Also read: RBI Imposes Rs 1-Crore Fine On Yes Bank For Non-Compliance In Swift Operations

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