RBI imposes Rs 1 crore fine on YES Bank for non-compliance

127

Yes BankThe Reserve Bank of India (RBI) has imposed a fine of Rs one crore on private sector lender YES Bank for non-compliance of the regulator’s directions on Swift 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,” said YES Bank in its regulatory filling.

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

Post the revelation of the Punjab National Bank (PNB) fraud pertaining to the misuse of Swift messaging software, the RBI is ensuring prompt actions through tough regulations.

On Monday, the Central Bank had imposed a combined monetary penalty of Rs 8 crore on three banks namely Karnataka Bank, United Bank of India and Karur Vysya Bank – for non-compliance of directions on Swift messaging software.

Prior to this, several other banks namely State Bank of Indis, Union Bank of India, Dena Bank were also penalised by the RBI 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.

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the BFSI industry. Join Us for 7th NBFC100 Tech Summit, Chennai and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.