RBI imposes penalty on five banks including PNB for regulatory non-compliance: Report

RBI imposed a penalty of 1.31 crore on PNB, which became the fifth bank for getting the wrath of the banking regulator. The penalty on PNB was imposed for non-compliance with RBI directions regarding 'loans and advances: statutory and other restrictions’

MintGenie Team
First Published6 Jul 2024, 04:31 PM IST
The RBI conducted the Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank with reference to its financial position as on March 31, 2022. (PTI)
The RBI conducted the Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank with reference to its financial position as on March 31, 2022. (PTI)

The Reserve Bank of India (RBI) penalised five banks including Punjab National Bank (PNB) with various RBI directions, reported The Economic Times.

RBI imposed a penalty of 1.31 crore on PNB, which became the fifth bank for getting the wrath of the banking regulator.

Other banks fined by the RBI are The Gujarat Rajya Karmachari Co-operative Bank in Gujarat, The Rohika Central Co-operative Bank in Madhubani, Bihar, The National Co-operative Bank in Mumbai and The Bank Employees' Co-operative Bank in West Bengal.

The penalty on PNB was imposed on July 3, 2024 for non-compliance with RBI directions regarding ‘Loans and Advances: Statutory and Other Restrictions’ and the ‘Reserve Bank of India (Know Your Customer (KYC) Direction, 2016’.

“The Reserve Bank of India (RBI) has, by an order dated July 03, 2024, 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 with certain directions issued by RBI,” said RBI in a statement.

“This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and section 51(1) of the Banking Regulation Act, 1949,” the statement on Friday reads.

Also Read | RBI governor Das urges bankers to step up efforts against mule accounts

The RBI conducted the Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank with reference to its financial position as on March 31, 2022.

Further, a notice was issued to the bank based on supervisory findings of non-compliance with RBI directions and related correspondence. The central bank advised it to show cause as to why penalty should not be imposed on it for its failure to comply with the directions.

After considering the PNB's reply to the notice and oral submissions made during the personal hearing, RBI found that the charges against the bank were sustained, warranting imposition of monetary penalty, the top bank said.

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First Published:6 Jul 2024, 04:31 PM IST
HomeMoneyPersonal FinanceRBI imposes penalty on five banks including PNB for regulatory non-compliance: Report

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