Reserve Bank of India (RBI) has imposed penalty of Rs 2 crore on Punjab National Bank (PNB) for non-compliance of regulatory directions with regard to SWIFT (Society for Worldwide Interbank Financial Telecommunication) operations. The fine was imposed on PNB for violations of regulatory directions observed during assessment of implementation of SWIFT- related operational controls.
Previously, RBI had imposed penalties worth Rs 71 crore on 36 public, private and foreign banks for non-compliance with various directions on implementation and strengthening of SWIFT operations. Some of these banks were SBI, ICICI Bank, HSBC, Bank of Baroda, Citibank, Canara Bank and Yes Bank.
Earlier also PNB was in news over issues of SWIFT system after Rs. 14,000-crore fraud carried out by jewelry designer Nirav Modi and his uncle Mehul Choksi by misusing this global messaging software.
Society for Worldwide Interbank Financial Telecommunication (SWIFT)