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The Reserve Bank of India (RBI) has imposed monetary penalty on ICICI Bank and Punjab National Bank. RBI has slapped 30 lakh fine on ICICI and 1.80 crore penalty on PNB.

The penalty on ICICI Bank has been imposed “for non-compliance with certain directions issued by RBI on ‘Levy of penal charges on non-maintenance of minimum balances in savings bank accounts’ dated November 20, 2014".

In a statement, the RBI said that the statutory inspection for supervisory evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2019. 

The examination of the Risk Assessment Report, Inspection Report and all related correspondence pertaining to the same, revealed non-compliance with the directions issued by RBI to the extent the bank levied charges for non-maintenance of minimum balance in saving accounts, which were not directly proportionate to the extent of the shortfall observed." 

In furtherance to the same, the central bank said, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with its directions.

“After considering the bank’s reply to the notice, oral submissions made in the personal hearing and examination of additional submissions made by it, RBI came to the conclusion that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty," the RBI said.

In case of PNB, the central bank said the action was based on the deficiencies in regulatory compliance. The RBI found the state-run bank was in contravention of sub-section (2) of section 19 of the Act to the extent that it held shares in borrower companies, as pledgee, of an amount exceeding thirty per cent of paid-up share capital of those companies. A notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it.

After considering the bank’s reply to the notice, the central bank came to the conclusion that the charge of contravention of the provisions of the act was substantiated and warranted imposition of monetary penalty on the bank.

 

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