Case Brief
What Happened
The Reserve Bank of India, by order dated May 25, 2022, imposed a monetary penalty of ₹45 lakh on MUFG Bank Ltd. under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The penalty was for non-compliance with RBI directions on time-bound implementation and strengthening of SWIFT-related operational controls. RBI noted that the bank failed to establish Straight Through Processing between its Core Banking System/accounting system and SWIFT messaging system for transactions creating non-funded exposure/exposure with financial implications within the prescribed deadline, and also did not comply with the later mandated timeline of July 31, 2021. RBI stated that the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any customer transaction or agreement.