RBI imposes Rs 1.32 crore on Punjab National Bank for rule violations

Reserve Bank of India

The Reserve Bank of India (RBI) on July 5 said it has imposed Rs 1.32 crore monetary penalty on Punjab National Bank for rule violations.

The monetary penalty was imposed as bank sanctioned working capital demand loans to two State Government owned Corporations against amounts receivable from Government by way of subsidies/ refunds/ reimbursements, RBI said in a release.

Further, the lender had also failed to preserve the records pertaining to the identification of customers and their addresses obtained during the course of business relationship in certain accounts, release added.

The central bank had conducted Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank to its financial position as on March 31, 2022, and based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed.