PNB takes steps to secure SWIFT operations

PNB has taken a series of measures to check misuse of SWIFT message platform allegedly used by Nirav Modi and his associates to defraud the bank of Rs 1,2967.86 crore, the Finance Ministry said.

Published: 13th March 2018 07:52 PM  |   Last Updated: 13th March 2018 07:54 PM   |  A+A-

Listing out the steps taken by PNB, Shukla said the bank has established an additional tier (off-site) as a third level of re-authorisation of SWIFT messages, wherein payment messages are re-authorised by a separate team of SWIFT centre, Mumbai only. (File | Reuters)

By PTI

NEW DELHI: Fraud-hit Punjab National Bank (PNB) has taken a series of measures to check misuse of SWIFT message platform, allegedly used by Nirav Modi and his associates to defraud the bank of Rs 1,2967.86 crore, the Finance Ministry said today.

State-owned PNB has reported fraudulent issuance of Letters of Undertaking (LoUs)/ Foreign Letters of Credit (FLCs) for payments of import bills, amounting to Rs 12,967.86 crore, to the RBI, Minister of State for Finance Shiv Pratap Shukla said in a written reply to the Rajya Sabha.

He said as per inputs from PNB, messages were sent via SWIFT to overseas branches of Indian banks, regarding fraudulently issued LoUs/FLCs without entering the transactions in the bank's Core Banking System (CBS).

He further said that PNB has appraised that it has taken several steps to ensure that such unauthorised activities are not repeated.

Listing out the steps taken by PNB, Shukla said the bank has established an additional tier (off-site) as a third level of re-authorisation of SWIFT messages, wherein payment messages are re-authorised by a separate team of SWIFT centre, Mumbai only.

READ: PNB puts in place three-tier SWIFT process post Rs 12,700 crore scam

"Switching off of SWIFT server (LTE) by 10 pm, and restricting SWIFT operations at branches to 6.30 pm and centralised back office for trade finance by 7 pm", is another step taken by PNB.

Concurrent auditors at branches to ensure physical reconciliation of all SWIFT messages with CBS on daily basis and monitoring of SWIFT user ID creation/resetting, are some of the other measures taken by the bank.

In another reply, the minister said the PNB has informed that the banking transactions are being carried out in the normal course and there is no adverse impact on its customers.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp