PNB Fined Rs 1.8 Crore, ICICI Bank Gets Reserve Bank Penalty Too

A penalty of Rs 1.8 crore has been imposed on PNB by the RBI, while ICICI Bank has been fined Rs 30 lakh for deficiencies in regulatory compliances

PNB Fined Rs 1.8 Crore, ICICI Bank Gets Reserve Bank Penalty Too

RBI has penalised Punjab National Bank and ICICI Bank for non compliance of norms

Mumbai:

A penalty of Rs 1.8 crore has been imposed on Punjab National Bank (PNB) by the Reserve Bank of India (RBI), while ICICI Bank has been fined Rs 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 per cent 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 Rs 1.8 crore was imposed on PNB.

In the case of ICICI Bank, the RBI said that after conducting a statutory inspection for supervisory evaluation of the bank, it found non-compliance with directions related to levy of charges for non-maintenance of minimum balance in saving accounts.

The RBI however made it clear that in both the cases, penalties were levied on deficiencies in regulatory compliances and it was not a pronunciation on the validity of any transaction or agreement entered into by the banks with their respective customers.

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