RBI fines five banks, including PNB, for non-compliance: Report

The Reserve Bank of India (RBI) has penalised five banks, including Punjab National Bank (PNB), under various RBI directives, RBI reported Economic times.

RBI imposed a penalty of ₹1.31 crore to PNB, which became the fifth bank to attract the wrath of the banking regulator.

Other banks penalised by the RBI include The Gujarat Rajya Karmachari Co-operative Bank in Gujarat, The Rohika Central Co-operative Bank in Madhubani, Bihar, The National Co-operative Bank in Mumbai and The Bank Employees’ Co-operative Bank in West Bengal.

The penalty was imposed on PNB on July 3, 2024, for non-compliance with RBI guidelines on ‘Loans and Advances: Statutory and Other Restrictions’ and the ‘Reserve Bank of India (Know Your Customer (KYC) Guidelines, 2016’).

“The Reserve Bank of India (RBI) has, by its order dated July 3, 2024, imposed a monetary penalty of Rs. ₹“Rupees 1,318,000 (one crore thirty-one lakh eighty thousand) to Punjab National Bank (Bank) for non-compliance with certain guidelines issued by RBI,” the RBI said in a statement.

“This penalty has been imposed in exercise of powers conferred on the RBI under the provisions of Section 47 A(1)(c) read with Section 46(4)(i) and Section 51(1) of the Banking Regulation Act, 1949,” it said in a statement on Friday.

RBI conducted the statutory supervisory assessment (ISE 2022) audit of the bank with reference to its financial position as on March 31, 2022.

Further, the bank was issued a notice based on the supervisory findings of non-compliance with RBI guidelines and related correspondence. The central bank advised it to show why a penalty should not be imposed on the bank for non-compliance with the guidelines.

After considering PNB’s response to the notice and the oral submissions made during the personal hearing, the RBI found that the allegations against the bank were upheld, justifying the imposition of monetary penalty, the leading bank said.