RBI Levies Rs 1.31 Crore Penalty On Punjab National Bank

The Reserve Bank of India on Friday has imposed a monetary penalty of Rs 1.31 crore on Punjab National Bank for non-compliance. In a statement, the central bank said that the penalty was levied on the basis of supervisory evaluation of March 2022 accounts.

The bank extended loans to two state government companies against receivables of subsidies, refunds or reimbursements.

The bank also failed to preserve records pertaining to the identification of customers and their addresses obtained during the course of business relationship in certain accounts.

The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.