The Reserve Bank of India (RBI) imposed ₹2 Crore penalty on the state owned Punjab National Bank (PNB) for non-compliance of directions on Swift messaging software. Swift which stands for Society for Worldwide Interbank Financial Telecommunications is a software used by financial entities for the secure transaction of messages and instruction using standard codes.
“In the matter of violations of regulatory directions by Punjab National Bank observed during assessment of implementation of SWIFT- related operational controls, the Reserve Bank of India, (imposes) an aggregate penalty of ₹20 million … on Punjab National Bank,” it said.
Last year, the infamous fraud ₹14,000 Crore in the Punjab National Bank (PNB) was due to the misuse of Swift messenger. Since that the central bank has been very strict about the compliance of norms.
Since the inception of a separate Enforcement department to regulate the violation in banking norms by various banks, Central Bank’s punitive against against the defaulters have substantially increased.
Earlier this year, RBI imposed penalties of worth ₹71 crore on about public sector, private sector as well as foreign banks for the non-compliance of various norms and strengthening of SWIFT operations. PNB bank is getting penalized by RBI for the first time for non-compliance of Swift norms while earlier big lenders like ICICI bank, SBI, Canara Bank, Citi Bank and Yes Bank were penalized by banking regulator.