 "RBI imposes a monetary penalty of Rs 1.32 crore on Punjab National Bank")
The Reserve Bank of India (RBI) on Friday imposed a monetary penalty of Rs 1.32 crore on Punjab National Bank (PNB) for violating loans and advances and Know Your Customer (KYC) related norms.
According to the RBI’s press release, the bank had sanctioned working capital demand loans to two state government-owned corporations against amounts receivable from the government by way of subsidies, refunds, or reimbursements. In addition, the state-owned lender failed to preserve the records pertaining to the identification of customers and their addresses obtained during the course of the business relationship in certain accounts.
The Statutory Inspection for Supervisory Evaluation (ISE 2022) of the lender was conducted with reference to its financial position as of March 31, 2022.
The charges have been imposed after considering the oral submissions made in response to the show-cause notice sent by RBI to the bank.
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