RBI imposed a fine of 1.31 crore on Punjab National Bank

Business: Business, BI imposes Rs 1.31 crore fine on PNB, becoming the fifth bank to face the ire of banking regulator. The other banks fined by the RBI include Gujarat State Employees Cooperative Bank in Gujarat, Rohika Central Cooperative Bank in Madhubani, Bihar, Rashtriya Sahakari Bank in Mumbai and Bank Employees Cooperative Bank in West Bengal. The penalty was imposed on PNB for non-compliance of RBI directions dated July 3, 2024 in respect of ‘Loans and Advances: Statutory and Other Restrictions’ and ‘Reserve Bank of India (Know Your Customer (KYC) Directions, 2016’. “The Reserve Bank of India (RBI) by an order dated July 03, 2024 has imposed a monetary penalty of ₹1,31,80,000 (Rupees One Crore Thirty One Lakh Eighty Thousand Only) on Punjab National Bank (the bank) for non-compliance of certain directions issued by the RBI,” the RBI said in a statement. “The penalty is imposed under section 47A read with section 46 (4) (i) and section 51 (1) of the Banking Regulation Act, 1949,” the statement issued on Friday said. The imposition of the penalty has been imposed in exercise of powers vested in the RBI under the provisions of the said Act (1)(c) of the said Act.” for supervisory evaluation (ISE 2022) with reference to the financial position of the bank as on March 31, 2022.

Statutory oversight. Further, a notice was issued to the bank based on supervisory findings of non-compliance of RBI directions and related correspondence. The central bank advised it to show cause as to why a penalty should not be imposed on it for failing to comply with the directions. After considering PNB’s reply to the notice and the oral submissions made during the personal hearing, the RBI found that the allegations against the bank were substantiated, which justified imposition of monetary penalty, the apex bank said.