The portrait of Mahatma Gandhi is displayed on an Indian 2,000 rupee banknote in an arranged photograph in Bangkok, Thailand. (Photographer: Brent Lewin/Bloomberg)

RBI Imposes Rs 8-Crore Fine On Three Banks For Non-Compliance In Swift Operations

The Reserve Bank of India has imposed a total fine of Rs 8 crore on three banks—Karnataka Bank Ltd., United Bank of India and Karur Vysya Bank Ltd. —for non-compliance of directions on Swift messaging software.

While the RBI imposed a Rs 4 crore fine on Karnataka Bank, United Bank faces a penalty of Rs 3 crore, the regulator levied a Rs 1 crore fine on Karur Vysya Bank, according to their exchange filings. The RBI imposed the penalty on the lenders for delayed implementation of the Swift-related operational controls.

Swift is the global messaging software used for transactions by the financial entities. The Rs 14,000-crore fraud that came to light in February last year at the Punjab National Bank was a case of misuse of this system. The RBI has since been tough on banks about internal control mechanisms.

Earlier on Saturday, four banks —State Bank of India, Union Bank of India, Dena Bank and IDBI — had informed exchanges that the regulator had imposed a penalty for non-compliance with various directions. Union Bank was fined Rs 3 crore, Dena Bank Rs 2 crore and SBI and IDBI Rs 1 crore each.

Also read: RBI Slaps Rs 1-Crore Fine On SBI