RBI slaps Rs 1 cr fine on Yes Bank for non-compliance in Swift operations


Private sector lender Yes BankNSE -0.06 %Tuesday said the Reserve Bank of India has slapped a fine of Rs 1 crore on the bank for non-compliance of directions on SwiftNSE 4.92 % messaging software.

“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.

Swift is the global messaging software used for transactions by the financial entities.

Notably, the massive Rs 14,000 crore fraud at the Punjab National BankNSE 7.83 % (PNB) was a case of misuse of this messaging software.

Post the PNB fraud, which came to light in February 2018, the RBI has been tough on banks to tighten all kinds of transactions.

On Monday, RBI had imposed a total monetary fine of Rs 8 crore on three banks – Karnataka BankNSE 3.37 %, United Bank of India and Karur Vysya BankNSE 4.50 % – for non-compliance of directions on Swift messaging software.

Earlier on Saturday, four banks — SBI, Union Bank of India, Dena BankNSE 3.78 % and IDBI — had informed exchanges about monetary penalty slapped on them by the regulator for non-compliance with various directions.

Fine of Rs 3 crore was imposed on Union Bank, Rs 2 crore on Dena Bank, and Rs 1 crore each on IDBI and the SBI.