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RBI Directs Banks to Link Core Systems with SWIFT Following PNB Scam
February 26, 2018
In a bid to prevent the exploitation of the banks’ management and procedural systems the way it happened with Punjab National Bank (PNB) resulting in a loss of $1.8 billion, central bank RBI has instructed all the other banks to link their core banking software to link with the SWIFT messaging system.
SWIFT is an online banking network which is used by the banks around the world to communicate with each other and verify transactions, etc. Since a Mumbai branch of PNB wasn’t linked to the same, it led to the occurrence of the PNB scam which is also regarded as the biggest in the history of Indian economy.
