Reserve Bank of India fines 19 lenders: Reuters

|About: ICICI Bank Limited (IBN)|By:, SA News Editor

The Reserve Bank of India has fined at least 19 lenders, including ICICI Bank (IBN +4%) and State Bank of India (OTCPK:SBKJY), for violating its guidelines on the use of the SWIFT global payments network, Reuters reports.

Bankers at four of the lenders that were fined said most of the issues related to either interpretations of RBI's guidelines or minor technical matters.

The penalties ranged from INR 10M-INR 40M, and totaled more than INR 400M ($5.7M).

The fines send "a stern signal from RBI to banks to strengthen their internal systems and minimize fraud," said Mitul Budhbhatti, associate director and head of banking, financial services and insurance at CARE Ratings.

The fines follow a $2B fraud at state lender Punjab National Bank early last year resulting from unauthorized credit guarantees linked to billionaire Nirav Modi and his uncle, Mehul Choksi, via SWIFT.

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