Case Brief
What Happened
By an order dated December 15, 2021, RBI imposed a monetary penalty on Punjab National Bank for contravention of section 19(2) of the Banking Regulation Act, 1949. RBI said supervisory inspection revealed that the bank, as pledgee, held shares in borrower companies beyond the statutory limit of 30% of the paid-up share capital of those companies. After issuing a show-cause notice and considering the bank's reply and oral submissions, RBI concluded that the contravention was substantiated and levied the penalty under section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Act.