On July 5, the Reserve Bank of India (RBI) announced that it has imposed a monetary penalty of ₹1.32 crore on Punjab National Bank for rule violations.
The penalty was imposed because the bank sanctioned working capital demand loans to two State Government-owned corporations against amounts receivable from the Government in the form of subsidies, refunds, or reimbursements, according to an RBI release.
Additionally, the bank failed to preserve records related to the identification of customers and their addresses, which were obtained during the course of their business relationship in certain accounts, the release stated. The RBI had conducted a Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank’s financial position as of March 31, 2022. Based on the supervisory findings of non-compliance with RBI directions and related correspondence, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed.
