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Business News/ Industry / Banking/  RBI fines Allahabad Bank, ICICI Bank, Yes Bank for non-compliance of norms
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RBI fines Allahabad Bank, ICICI Bank, Yes Bank for non-compliance of norms

Allahabad Bank was fined ₹2 crore for not complying with Nostro account rules
  • The central bank also imposed a fine of ₹1 crore on Yes Bank for non-compliance of directions on Swift
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    (Mint)

    New Delhi: The Reserve Bank of India (RBI) has imposed a fine of 2 crore on Allahabad Bank for non-compliance of directions with regard to Nostro accounts, the state-owned lender said on Tuesday. A Nostro account is an account that a bank holds in a foreign currency in another bank.

    Private sector lender ICICI Bank, too, has been slapped with a fine of 1 crore for delay in compliance with directions related to global messaging software Swift.

    Allahabad Bank was fined for non-compliance of RBI directions dated 20 February, 2018 pertaining to the reconciliation of Nostro on a real-time basis with immediate effect, according to a BSE filing.

    According to RBI directions, banks have to interpret real time as T+1 for Nostro debits and T+5 for Nostro credits.

    The amount of penalty was not material considering the size of the bank, and necessary measures for compliance with the said RBI directions had been taken, Allahabad Bank added.

    In a separate filing to exchanges, ICICI Bank said: "The Banking Regulation Act, 1949, levied an aggregate penalty of 10 million vide its order dated February 25, 2019. The penalty has been levied for delay in compliance with RBI's directives on 'Time-bound implementation and strengthening of Swift related controls."

    Yes Bank also informed on Tuesday about a fine of 1 crore for non-compliance of directions on Swift.

    On Monday, a number of private as well as public sector banks said penalties had been levied on them by the RBI for failure to comply with Swift software operating requirement.

    This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

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    Published: 05 Mar 2019, 04:17 PM IST
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