Case Brief
The Reserve Bank of India imposed monetary penalties on 36 banks for failing to comply with RBI directions on time-bound implementation and strengthening of SWIFT-related operational controls. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, after an assessment of 50 major banks found deficiencies in areas such as direct creation of payment messages in the SWIFT environment, STP between CBS/accounting and SWIFT, segregation of users, independent log reconciliation, additional approval for high-value payment messages, and Nostro reconciliation. After show-cause notices, replies, hearings, and further submissions, RBI levied penalties ranging from ₹10 lakh to ₹40 lakh on the affected banks.