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Reserve Bank of India (RBI) has instructed all banks to integrate SWIFT (Society for World Interbank Financial Telecommunication System platform) with its core banking solutions (CBS) by ____________.
  • a)
    March 1, 2018
  • b)
    March 30, 2018
  • c)
    April 1, 2018
  • d)
    April 30, 2018
  • e)
    May 30, 2018
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Reserve Bank of India (RBI) has instructed all banks to integrate SWIF...
Reserve Bank of India (RBI) has instructed all banks to integrate SWIFT (Society for World Interbank Financial Telecommunication System platform) with itscore banking solutions (CBS) by April 30, 2018. This instruction by RBI is aimed at tightening internal controls in banks in wake of Rs 11400 crore fraud that has been unearthed at Punjab National Bank (PNB). The modus operandi of PNB fraud revolved around the misuse of SWIFT system by two officials of PNB in a Mumbai Branch. SWIFT system is used by banks across the world to transmit messages relating to cross border financial transactions.Through SWIFT, the two accused officials of PNB, issued unauthorised letters of undertaking (a kind of Bank guarantees) to diamond and jewellery importer Nirav Modi-linked companies. The officials did not make these entries in the CBS. This fraudulent activity was going on since 2011. As SWIFT was not integrated with CBS in PNB, these transactions went undetected for over seven years.
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Reserve Bank of India (RBI) has instructed all banks to integrate SWIFT (Society for World Interbank Financial Telecommunication System platform) with its core banking solutions (CBS) by ____________.a)March 1, 2018b)March 30, 2018c)April 1, 2018d)April 30, 2018e)May 30, 2018Correct answer is option 'D'. Can you explain this answer?
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