The Reserve Bank of India (RBI) has asked the lenders to clarify their stand for not integrating SWIFT messaging network with Core Banking System (CBS).
As per the industry sources, the regulator in its letter last week has asked all the banks to explain the reason for not linking CBS with SWIFT. This notice comes four months after the April 30 deadline to ensure that all notifications sent on the SWIFT network are recorded with the core banking system ended.
The SWIFT network enables the banks to communicate all transaction-related information with each other through definite messaging types called “series”. There is, however, some overlap in functions of different series, leading to each bank using the messaging series they are comfortable with to communicate.
Followed by this, public lender Punjab National Bank filed also filed a formal complaint with the Central Bureau of Investigation after it found that some of its employees at the Brady House branch, Mumbai had helped diamantaire Modi’s and jeweler Mehul Choksi’s companies and initiated fraudulent letters of undertaking. These letters issued by the banks using fraudulent ways helped Modi’s and Choksi’s companies to avail trade credit from foreign branches of other Indian banks.