RBI Imposes ₹ 1.8 Crore Penalty On Punjab National Bank, Also Fines ICICI Bank
A penalty of ₹ 1.8 crore has been imposed on Punjab National Bank (PNB) by the Reserve Bank of India (RBI), while ICICI Bank has been fined ₹ 30 lakh for deficiencies in regulatory compliances.According to a statement issued by the central bank, PNB was found guilty of contravening provisions of the Banking Regulation Act, 1949, related to pledge of shares by it.
Investigations by RBI found that PNB had held shares in borrower companies, as pledgee, of an amount exceeding thirty percent of paid-up share capital of those companies.
After going through the submissions given by the bank, RBI was convinced that the violation called for imposition of fine and therefore the penalty of ₹ 1.8 crore was imposed on PNB.The RBI stated that after performing a statutory inspection for supervisory evaluation of ICICI Bank, it discovered non-compliance with instructions related to the levy of charges for non-maintenance of minimum balance in savings accounts.
The RBI, on the other hand, made it plain that in both cases, fines were imposed for regulatory violations, not for the legitimacy of any transaction or agreement entered into by the banks with their individual clients.
Follow Startup Story
Related Posts
