Mumbai, Jul 5 (PTI) 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 directions 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 on March 31, 2022.
A notice was issued to the bank.
After considering the bank's reply to the notice, RBI said it found that PNB sanctioned working capital demand loans to two state government-owned corporations against amounts receivable from government by way of subsidies/ refunds/ reimbursements.
Also, the public sector lender failed to preserve the records pertaining to the identification of customers and their addresses obtained during the course of business relationship in certain accounts, RBI said.
The central bank, however added the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreement entered into by the bank with its customers.
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