The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹131.80 lakh on Punjab National Bank (PNB) for non-compliance with the directions issued on ‘Loans and Advances’ and ‘Know Your Customer (KYC)’.
Based on supervisory findings of non-compliance with its directions (following the statutory inspection for supervisory assessment with reference to the financial position of PNB as on March 31, 2022) and related correspondence in that regard, the RBI said that while advising the bank A notice was issued. Give reasons why he should not be fined for failure to follow the instructions.
“After considering the bank’s response to the notice and the oral submissions made during the personal hearing, the RBI inter alia finds that the following allegations against the bank are sustained, warranting imposition of monetary penalty,” the central bank said in a statement. It has become necessary.
RBI noted that the public sector bank sanctioned working capital demand loans to two state government-owned corporations against the amount received from the government by way of (i) subsidy/refund/reimbursement, and (ii) customers Failed to preserve records relating to identification. and their addresses obtained in the course of business relations in some accounts.
The central bank said its action is based on deficiencies in regulatory compliance and is not intended to pass judgment on the validity of any transaction or agreement entered into by the bank with its customers.
Further, the imposition of monetary penalty will not have any adverse effect on any other action initiated by the RBI against the bank.
(TagstoTranslate)Monetary Penalty(T)Reserve Bank of India(T)Punjab National Bank(T)Know Your Customer(T)Financial Status
