The Reserve Bank of India has imposed a penalty of Rs. 1 crore on the Yes Bank Limited, due to the non-compliance of directions on Swift messaging software by the bank.
Yes Bank in its Regulatory filing stated, “The Reserve Bank of India, in exercise of powers conferred under Section 47 A of the Banking Regulation Act, 1949 has levied an aggregate penalty of Rs. 10 Million (Rupees Ten Million) on the Bank for non-compliance of Regulatory directions observed during assessment of implementation of SWIFT-related operational controls.”
Swift, which is the global messaging software of the private sector lender, is used for transactions by financial entities. According to the reports, the Punjab National Bank’s Rs. 14,000 crores scam was caused by the misuse of this messaging software.
The Reserve Bank has adopted a tough stance and has tightened regulations on all kind of these transactions, after the PNB scam surfaced in February 2018.
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