The Reserve Bank of India (RBI) imposed heavy penalties on five banks for regulatory non compliances. The public sector Punjab National Bank (PNB) faced the wrath of the banking regulator imposing penalties of Rs 1.31 crore for flouting RBI regulations on loans and advances statutory and others restrictions and KYC norms.
“The RBI has imposed a monetary penalty of ₹1,31,80,000 on Punjab National Bank for non-compliance with certain directions issued by RBI,” said the banking regulator in a statement.
The central bank also fined The National Co-operative Bank in Mumbai, The Gujarat Rajya Karmachari Co-operative Bank, The Rohika Central Co-operative Bank in Madhubani, Bihar and The Bank Employees' Co-operative Bank in West Bengal.
The RBI conducted the Statutory Inspection for Supervisory Evaluation (ISE 2022) of PNB with reference to its financial position and notice issued based on supervisory findings of non-compliance with RBI directions and related correspondence.
The central bank questioned PNB for its failure to comply with the directions and after personal hearing last and oral submissions found that the charges against the bank were sustained, warranting imposition of monetary penalty.
