Punjab National Bank Slapped with Rs1.32 Crore Penalty by RBI
Moneylife Digital Team 08 July 2024
The Reserve Bank of India (RBI) has imposed a penalty of Rs1.32 crore on Punjab National Bank (PNB) for non-compliance with directions related to loans and advances, as well as statutory and other restrictions and know-your-customer (KYC) directions.
 
In a release, the RBI says that the penalty was imposed on PNB for two reasons. “First, PNB had sanctioned working capital demand loans to two state government-owned corporations against amounts receivable from the government through subsidies, refunds and reimbursements. Second, PNB failed to preserve records pertaining to the identification of customers and their addresses obtained during the course of business relationships in certain accounts.”
 
After considering the facts of the case and the Bank’s reply, RBI says the violations were substantiated and warranted the imposition of a penalty.
 
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the Bank with its customers, RBI says.
Comments
Array
Free Helpline
Legal Credit
Feedback