Case Brief
What Happened
By orders dated January 31, 2019, RBI imposed monetary penalties on three banks: Bank of India, Oriental Bank of Commerce, and Punjab National Bank. The penalties were imposed for non-compliance with RBI directions on monitoring the end use of funds, exchange of information with other banks, and restructuring of accounts, under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. RBI clarified that the action is based on regulatory compliance deficiencies and does not pronounce upon the validity of any transaction or agreement entered into with customers.