RBI penalises 4 banks for non-compliance

346

RBIThe Reserve Bank of India (RBI) has penalised four Public Sector Banks (PSBs) by imposing monetary penalty on them.

The Central bank has fined Union Bank, Dena Bank, IDBI Bank and the State Bank of India (SBI) for Rs 3 crore, Rs 2 crore, Rs 1 crore each respectively, for non-compliance with various guidelines, said the bank in its regulatory filing.

While the Union Bank said that the apex bank imposed a fine of  Rs 3 crore on the bank for its delay in adherence to its directives on ‘Time bound implementation and strengthening of SWIFT related controls’ mentioned in the RBI circular of February 20, 2018.

In a filing at the Bombay Stock Exchange (BSE), Dena Bank said that RBI has imposed a penalty of Rs 2 crore for its non-compliance on the directions issued on February 20, 2018.

The IDBI Bank, in another filing said that the regulator penalised the bank of Rs 1 crore for contravention of its regulatory directions on time-bound implementation and strengthening of operational controls pertaining to SWIFT.

“The Bank has put in place necessary corrective actions to strengthen its internal control mechanisms so as to ensure that such incidents do not recur,” IDBI said.

The SBI is imposed with Rs 1 crore penalty for late implementation of the daily settlement of Swift transaction logs with effect from February 20, 2018 at 226 “low intensity branches” of the bank.

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 Elets BFSI Gamechanger Summit, Goa and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.