The Reserve Bank of India (RBI) imposed 1 Crore penalty on the private lender Yes Bank 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.
“The Reserve Bank of India (RBI)… has levied an aggregate penalty of Rs 10 million (Rs 1 crore) on the bank for non-compliance of regulatory directions observed during assessment of implementation of SWIFT-related operational controls,” Yes Bank said in a regulatory filing.
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.
Earlier the week, RBI imposed an aggregate fine of 8 Crore over three other lenders-Karnataka Bank, United Bank of India and Karur Vysya Bank for non-compliance of directions on Swift messaging software