Mumbai: The RBI on Friday said it has imposed a monetary penalty of Rs 1.31 crore on Punjab National Bank for non-compliance with certain instructions related to KYC and 'loans and advances'.
The Reserve Bank said it conducted a statutory inspection of the bank with reference to its financial position as of March 31, 2022.
Notice issued to the bank.
After considering the bank's response to the notice, RBI said it found that PNB sanctioned working capital demand loans to two state government-owned corporations against the amount received from the government by way of subsidy/refund/reimbursement Is.
Further, the public sector lender failed to preserve records relating to the identity of customers and their addresses received during the course of business relationships in certain accounts, the RBI said.
However, the central bank said the fine is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into by the bank with its customers.
The Reserve Bank said it conducted a statutory inspection of the bank with reference to its financial position as of March 31, 2022.
Notice issued to the bank.
After considering the bank's response to the notice, RBI said it found that PNB sanctioned working capital demand loans to two state government-owned corporations against the amount received from the government by way of subsidy/refund/reimbursement Is.
Further, the public sector lender failed to preserve records relating to the identity of customers and their addresses received during the course of business relationships in certain accounts, the RBI said.
However, the central bank said the fine is based on deficiencies in regulatory compliance and is not intended to affect the validity of any transaction or agreement entered into by the bank with its customers.
