Mumbai, Feb 23: The Reserve Bank of India (RBI) has asked banks to integrate link for Society for Worldwide Interbank Financial Telecommunications (SWIFT) with their core banking system (CBS) by end of April 2018, said Indian Bank Association’s(IBA) Chairman Usha Ananthasubramian.
Ananthasubramian is also the managing director and chief executive of Allahabad Bank. She said that a memo has been sent regarding the RBI mandate.
Punjab National Bank’s Rs 114-billion fraud brought attention to the fact that many banks don’t have SWIFT integrated into their CBS. Ananthasubramian also said that Allahabad Bank, like many other banks, has not integrated SWIFT with CBS till now.
She further called the 30th April deadline as the ‘outer limit’ and said that all the banks are working towards integrating SWIFT with CBS at the earliest possible.
While the IBA has not sent any memo to banks, Ananthasubramian said that each bank will have to review their control systems and technology separately, as their problems and loopholes may differ.
She also added that technology becomes obsolete very soon and it is necessary for banks to undertake the constant review.
Ananthasubramian, who was previously the MD &CEO for PNB during August 2014 to 2017, refused to comment on the PNB fraud.
“The PNB fraud has highlighted the need for banks to review their internal controls and security. Rogue elements should not jeopardise the security and integrity of banks be it with or without collusion from outsiders”, said Ananthasubramian, addressing a Banking Technology conference by the IBA on Friday.