Reserve Bank of India (RBI) has imposed total monetary fine of Rs. 8 crore on three banks - Karnataka Bank (Rs. 4 crore), United Bank of India (R. 3 crore) and Karur Vysya Bank (Rs 1 crore) for non-compliance of directions on SWIFT global inter banking messaging software.
Reasons for Fine
The penalty was imposed on these bank for non-compliance with and contraventions of directions contained in RBI circular on time-bound implementation and strengthening of SWIFT-related operational controls.
Post Punjab National Bank (PNB) fraud, which came to light in February 2018, RBI has been tough on banks to tighten all kind of their transactions. The massive Rs 14,000 crore fraud at PNB was case of misuse of SWIFT messsaging software.