RBI fines five banks including PNB for regulatory non-compliance: Report

The Reserve Bank of India (RBI) has imposed fines on five banks including Punjab National Bank (PNB) under various RBI directions. the economic times,

RBI imposed fine PNB has been fined Rs 1.31 crore, making it the fifth bank to face the ire of the banking regulator.

Other banks fined by the RBI include Gujarat State Employees Cooperative Bank in Gujarat, Rohika Central Cooperative Bank in Madhubani, Bihar, Rashtriya Sahakari Bank in Mumbai and Bank Employees Cooperative Bank in West Bengal.

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

“The Reserve Bank of India (RBI), by an order dated July 03, 2024, has imposed a monetary penalty of “Punjab National Bank has been imposed a penalty of ₹1,31,80,000 (Rupees One Crore Thirty One Lakh Eighty Thousand Only) for non-compliance of certain directions issued by the RBI,” the RBI said in a statement.

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

RBI conducted the statutory inspection (ISE 2022) for supervisory assessment with reference to the financial position of the bank 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 asked it to show cause as to why a penalty should not be imposed on it for non-compliance of the directions.

The apex bank said that after considering PNB's reply to the notice and the oral submissions made during the personal hearing, the RBI found that the allegations against the bank were substantiated and warranted imposition of monetary penalty.

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