Reserve Bank of India penalises IDBI Bank, Union Bank, Dena Bank, and SBI

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Following the loan fraud involving Punjab National Bank and several other banks on varying degrees, that has resulted in severe net losses and the increase in non-performing assets (NPAs), the Reserve Bank of India rolled out regulations in March 2018 for banks to implement SWIFT (Society for Worldwide Interbank Financial Telecommunication) in a time-bound manner to improve financial transparency amongst banks in the country. However, for not meeting the deadlines of the implementation and non-compliance of regulations, the Reserve Bank of India has penalised 4 banks – IDBI Bank, Dena Bank, Union Bank, and State Bank of India.  

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Reserve Bank of India penalises IDBI Bank, Union Bank, Dena Bank, and SBI

According to the reports, the regulator has imposed a penalty of Rs.3 crore on Union Bank, Rs.2 crore on IDBI Bank, Rs.1 crore on State Bank of India, and Rs.1 crore on IDBI Bank. According to State Bank of India, the RBI has penalised them for failing to implement SWIFT (Society for Worldwide Interbank Financial Telecommunication) in 226 branches that the bank considers low-intensity branches.  

Source: IIFL 

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