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RBI imposes Rs 2-cr penalty on PNB for non-compliance of SWIFT operations

Earlier this year, the RBI had imposed penalties worth Rs 71 crore on 36 public, private and foreign banks

Press Trust of India  |  New Delhi 

Punjab National bank, PNB
Punjab National Bank

The has slapped a penalty of Rs 2 crore on (PNB) for non-compliance of regulatory directions with regard to SWIFT operations, the state-run lender said Tuesday.

SWIFT is a global messaging software used for transactions by financial entities. The massive Rs 14,000-crore fraud perpetrated by billionaire jeweller and his uncle Mehul Choksi at the PNB was a case of misuse of this messaging software.

In a regulatory filing, the PNB said the Reserve Bank in a letter dated March 25 has informed the bank about the penalty.

"In the matter of violations of regulatory directions by observed during an assessment of the implementation of SWIFT-related operational controls, the Reserve Bank of India, (imposes) an aggregate penalty of Rs 20 million ... on Punjab National Bank," it said.

Earlier this year, the Reserve Bank had imposed penalties worth Rs 71 crore on 36 public, private and foreign for non-compliance with various directions on time-bound implementation and strengthening of However, the list did not include PNB.

The major which were fined by the regulator included SBI, ICICI Bank, HSBC, Bank of Baroda, Citibank, Canara Bank and Yes Bank.

First Published: Tue, March 26 2019. 16:25 IST