RBI imposes Rs 2 Cr fine on PNB
Reserve Bank of India (RBI) has imposed a fine of Rs 2 crore on Punjab National Bank. PNB is accused of misusing the software used for financial transactions. In fact, the RBI has imposed a fine of Rs 2 crore on Punjab National Bank (PNB) in the public sector for avoiding compliance with regulatory guidelines in respect of SWIFT operations. This information is given on behalf of PNB itself.
Swift is a global messaging software, used by financial units for global transactions. This messaging software was misused in the PNB scam involving jewellery trader Nirav Modi and his uncle, Mehul Choksi.
PNB said in the information sent to the stock exchanges that the Reserve Bank has given the information of imposing penalties on March 25. Earlier this year, the central bank imposed a fine of Rs 71 crore on 36 public and private sector banks, which failed to implement timely execution of various instructions and strengthen swift operations.
The major banks which were penalized include SBI, ICICI Bank, HSBC, Bank of Baroda, Citibank, Canara Bank and Yes Bank. However, PNB’s name was not in this list. But now the central bank has imposed a fine of Rs 2 crore on PNB in the case of Nirav Modi.
