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RBI fines ICICI Bank, Yes Bank, Allahabad Bank for failing to comply with norms

PW Bureau 

Allahabad Bank was fined Rs 2 crore, while Yes Bank and ICICI Bank was slapped with a Rs 1 crore penalty each New Delhi: For failing to comply with directions, the Reserve Bank of India (RBI) has slapped a penalty on ICICI Bank, Yes Bank and Allahabad Bank, on Tuesday. While a fine of Rs 1 crore has been imposed on ICICI Bank for delay in compliance with directions with regard to global messaging software Swift, Yes Bank has been asked to pay a fine of Rs 1 crore.  Allahabad Bank, on the other hand, will pay a fine of Rs 2 crore for failing to meet the directions issued by the Central bank.

ICICI Bank slapped with Rs 1-crore penalty

In a filing to exchanges, ICICI Bank said: “The Banking Regulation Act, 1949, levied an aggregate penalty of Rs 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 announces Rs 1-crore fine

For non-compliance of directions on Swift, Yes Bank also announced a fine of Rs 1 crore on Tuesday.

Allahabad Bank to pay Rs 2 crore

Allahabad Bank has been handed a penalty for failing to meet the directions issued by the Central bank with respect to Nostro accounts. A Nostro account is an account that a lender holds in another bank in foreign currency. The nationalised lender was penalised for failure to comply with RBI directions dated February 20, 2018, with regard to reconciliation of Nostro on real-time basis with immediate effect, as per a BSE filing. Lenders have to interpret real-time as T+1 for Nostro debits and T+5 for Nostro credits, according to the central bank’s directions. Considering the size of the bank, the penalty amount is not material, and necessary measures for compliance with the RBI directions have been taken, Allahabad Bank said. The share index Allahabad Bank’s stock was trading 4.10 percent up at Rs 52 on BSE, while ICICI Bank was up 2.53 percent at Rs 362.45. Private sector Yes Bank was trading down 0.21 percent at Rs 236.90. Many private and state-owned banks on Monday informed about fines levied on them by RBI for non-compliance with Swift software operating requirements.