Key Points
In the first week of July, the Reserve Bank of India (RBI) penalized Punjab National Bank (PNB) and four other banks for non-compliance with various RBI directions...
The Gujarat Rajya Karmachari Co-operative Bank, Gujarat; The Rohika Central Co-operative Bank, Madhubani, Bihar; The National Co-operative Bank, Mumbai, Maharashtra; and The Bank Employees' Co-operative Bank, West Bengal were the four banks which were fined by the RBI...
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 RBI said, "The Reserve Bank of India (RBI) has, by an order dated July 03, 2024, imposed a monetary penalty of Rs 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."..
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.. Punjab National Bank sanctioned working capital demand loans to two state government owned corporations against amounts receivable from Government by way of subsidies/ refunds/ reimbursements, it is a violation of its directions, RBI further said...
