Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1 crore on Punjab & Sind Bank by order dated September 21, 2023. RBI said the bank had not complied with sub-section (2) of Section 26A of the Banking Regulation Act, 1949, read with its directions on the Depositor Education and Awareness Fund Scheme, 2014. Based on the inspection for supervisory evaluation (ISE 2021), RBI found that the bank failed to credit eligible amounts to the Fund within the prescribed period. After a show-cause process and hearing, RBI concluded that the non-compliance was substantiated and warranted penalty.