Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of Rs 1,31,80,000 on Punjab National Bank by order dated July 03, 2024. The penalty was imposed after RBI's supervisory inspection found non-compliance with directions on loans and advances as well as KYC requirements. Specifically, RBI said the bank sanctioned working capital demand loans to two State Government-owned corporations against amounts receivable from Government by way of subsidies, refunds, and reimbursements, and also failed to preserve records relating to customer identification and addresses in certain accounts. RBI cited section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.