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PNB takes steps to secure SWIFT operations

Press Trust of India  |  New Delhi 

Fraud-hit (PNB) has taken a series of measures to check misuse of SWIFT message platform, allegedly used by and his associates to defraud the of Rs 1,2967.86 crore, the Ministry said today.

State-owned has reported fraudulent issuance of Letters of Undertaking (LoUs)/ Foreign Letters of Credit (FLCs) for payments of import bills, amounting to Rs 12,967.86 crore, to the RBI, of State for Shiv said in a written reply to the Rajya Sabha.

He said as per inputs from PNB, messages were sent via SWIFT to overseas branches of Indian banks, regarding fraudulently issued LoUs/FLCs without entering the transactions in the bank's Core System (CBS).

He further said that has appraised that it has taken several steps to ensure that such unauthorised activities are not repeated.

Listing out the steps taken by PNB, Shukla said the has established an additional tier (off-site) as a third level of re-authorisation of SWIFT messages, wherein payment messages are re-authorised by a separate team of SWIFT centre, only.

"Switching off of SWIFT server (LTE) by 10 pm, and restricting SWIFT operations at branches to 6.30 pm and centralised back office for trade by 7 pm", is another step taken by

at branches to ensure physical reconciliation of all SWIFT messages with on daily basis and monitoring of SWIFT user ID creation/resetting, are some of the other measures taken by the bank.

In another reply, the said the PNB has informed that the transactions are being carried out in the normal course and there is no adverse impact on its customers.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 19:05 IST