The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1,31,80,000 on Punjab National Bank (PNB) for non-compliance with certain regulatory directions. The penalty was imposed following an order dated July 3, 2024, as stated by the RBI in a recent statement.
The RBI’s decision to penalize PNB stems from violations related to ‘Loans and Advances: Statutory and Other Restrictions’ and the ‘Reserve Bank of India (Know Your Customer (KYC) Direction, 2016′. The statutory inspection for supervisory evaluation (ISE 2022) was conducted on PNB with reference to its financial position as of March 31, 2022.
The central bank issued a notice to PNB based on supervisory findings indicating non-compliance with the RBI’s directions. PNB was then advised to show cause as to why a penalty should not be imposed for its failure to comply with these directions. After reviewing PNB’s response to the notice and considering the oral submissions made during the personal hearing, the RBI concluded that the charges were substantiated, thereby necessitating the imposition of the monetary penalty.
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.
In addition to PNB, other banks have also faced penalties from the RBI for various non-compliances. These include 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.
The RBI’s stringent measures underscore its commitment to ensuring compliance and maintaining the integrity of the banking system in India.
