RBI fines 4 banks for non-compliance in Swift ops

The RBI has imposed a total monetary fine of Rs. 11 crore on four banks – Karnataka Bank, United Bank of India, IOB and Karur Vysya Bank – for non-compliance of directions on Swift messaging software.

While the RBI imposed a Rs. 4 crore penalty on Karnataka Bank, it slapped a fine of Rs. 3 crore each on United Bank and Indian Overseas Bank. Besides, the regulator has also levied Rs. one crore fine on Karur Vysya Bank.

The Reserve Bank of India has levied an aggregate penalty of Rs. 40 million on the bank for delayed implementation of four of the Swift related operational controls, Karnataka Bank said in a regulatory filing.