Business

RBI Slaps Punjab National Bank With Rs 1.32 Crore Penalty For Regulatory Non-Compliance

On Saturday, the Reserve Bank of India (RBI) has imposed a penalty of Rs 1.32 crore on Punjab National Bank (PNB) for violations related to regulatory norms on ‘Loans and Advances – Statutory and Other Restrictions’ and breaches of Know Your Customer (KYC) guidelines.

During its statutory inspection, the RBI identified that PNB had sanctioned working capital demand loans to two State Government-owned Corporations against amounts receivable from the Government in the form of subsidies, refunds, or reimbursements.

Regulators deemed this action non-compliant with established regulatory frameworks.

Additionally, PNB failed to maintain records related to customer identification and addresses in certain accounts, contravening KYC norms mandated for financial institutions.

The RBI clarified that the penal action against PNB is solely based on deficiencies in regulatory compliance and does not imply any judgment on the validity of transactions or agreements between the bank and its customers.

In response to the penalty, PNB is likely to take corrective measures to strengthen its compliance frameworks and ensure adherence to all regulatory guidelines issued by the RBI.

The regulatory scrutiny underscores the RBI’s commitment to maintaining the integrity of banking operations and safeguarding the interests of customers and stakeholders within the financial sector.

Also Read: Madhya Pradesh CM Mohan Yadav Launches ‘Ek Ped Maa Ke Naam’ Campaign In Bhopal

Mankrit Kaur

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