RBI imposes penalty on PNB, ICICI Bank | Here's why
Punjab National Bank and ICICI Bank were fined with a penalty of Rs. 1.8 crore and Rs 30 lakhs respectively by the Reserve Bank of India (RBI) on Wednesday. The penalties were imposed for deficiencies in regulatory compliance. In a statement, the 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.
In the case of the ICICI Bank, the RBI said the statutory inspection for supervisory evaluation of the bank was conducted by it with reference to its financial position as of March 31, 2019.
Later, the RBI found non-compliance with directions related to levy of charges for non-maintenance of minimum balance in saving accounts.
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 PTI Inputs)
