look news india
RBI Penalty onPNB: RBI has taken major action against the country's second largest public sector bank Punjab National Bank. The Reserve Bank has imposed a huge fine of Rs 1.31 crore on PNB. The Reserve Bank has taken this action against the bank for not following the KYC rules and 'loan and advance' rules. The central bank had inspected the financial position of PNB as of March 31, 2022. After this, RBI issued a notice to the bank on this matter.
Why was the bank fined?
The Reserve Bank has found in its investigation that PNB had given working capital demand loans to state government corporations in exchange for funds received from the government through subsidies, refunds and reimbursements. Apart from this, PNB has failed to maintain information related to customer details and addresses in some of its accounts. In such a situation, the bank has also been fined for not maintaining KVEC related information of customers. RBI has imposed a total fine of Rs 1.31 crore on PNB.
How much impact will this have on customers?
Taking action against Punjab National Bank, the Reserve Bank has said that the central bank has imposed this fine on the bank for regulatory reasons and the Reserve Bank has no intention of interfering in the internal functioning of the bank. In such a situation, this fine is not going to have any effect on the bank customers.
The Reserve Bank has also decided to cancel the license of Karnataka-based Shamsha Sahakari Bank. According to the central bank, the financial condition of the bank had deteriorated. Due to this, the license of the bank has been canceled from July 5, 2024. Customers depositing up to Rs 5 lakh in the bank will get 100 percent cashback under DICGC. RBI has said that 99.96 percent of the bank's customers will get their entire amount through DICGC.