RBI Slaps Rs 1.31 Crore Penalty on Punjab National Bank for Non-Compliance
RBI Slaps ₹1.31 Crore Penalty on Punjab National Bank for Non-Compliance
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.31 crore on Punjab National Bank (PNB) for failing to comply with its directives on ‘Loans and Advances: Statutory and Other Restrictions’ and ‘Know Your Customer (KYC) Directions, 2016’. This action makes PNB the fifth bank to face the banking regulator’s strict measures.
The penalty was levied following the RBI’s Statutory Inspection for Supervisory Evaluation (ISE 2022), which scrutinized PNB’s financial position as of March 31, 2022. Based on the inspection, the RBI issued a notice to PNB, highlighting its non-compliance with various regulatory guidelines and demanding an explanation for the lapses.
“The Reserve Bank of India (RBI) has, by an order dated July 3, 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,” stated the RBI.
This penalty is enforced under the provisions of Section 47 A (1) (c), read with Sections 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949. The RBI’s actions followed an evaluation of PNB’s response to the notice and oral submissions made during a personal hearing, which confirmed the bank’s regulatory breaches.
PNB is not the only bank facing penalties. The RBI has also fined 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 for various regulatory violations.
The central bank’s stringent measures underscore its commitment to maintaining the integrity and stability of the financial system by ensuring strict adherence to regulatory guidelines.
