RBI slaps Rs 1.8 cr penalty on PNB, Rs 30 Lakh on ICICI Bank - Here is why

The Reserve Bank of India (RBI) on Wednesday announced that it has imposed a penalty of Rs 1.8 crore on Punjab National Bank. RBI said the Statutory Inspection for Supervisory Evaluation (ISE) of Punjab National Bank (PNB) was conducted by it with reference to its financial position as of March 31, 2019.

Following the ISE and examination of other documents, the RBI found contravention of its provisions relating to the pledge of shares by the PNB, the RBI said in a statement.

The banking regulator also imposed a monetary penalty of Rs 30 Lakh on ICICI Bank Ltd for non-compliance of rules. The levy of penal charges was on account of non-maintenance of minimum balances in savings bank accounts dated November 20, 2014, a press release issued by RBI said.

"This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949 (the Act), the RBI said in a statement. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the release said.

In both cases, penalties were based on deficiencies in regulatory compliance and were not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their respective customers, the RBI mentioned.

(with inputs from PTI)