look news india
RBI On Friday, the RBI said that it has imposed a fine of Rs 1.31 crore on Punjab National Bank (PNB) for not following certain instructions related to 'Know Your Customer' (KYC) and 'Loans and Advances'. A few years ago, Gujarat's diamond merchant Nirav Modi had committed a fraud of about Rs 12 thousand crore in Punjab National Bank.
The Reserve Bank said that it conducted a statutory inspection with respect to the financial position of the bank as on March 31, 2022. After that a notice was issued to the bank. After considering the bank's reply to the notice, RBI found that PNB sanctioned working capital demand loans to two state government-owned corporations in lieu of the amount received by way of subsidy/refund/reimbursement from the government.
Also, the public sector lender failed to preserve records relating to the identity and address of customers obtained in the course of business relationships in certain accounts of this bank, the RBI said. However, the central bank said that the fine is based on deficiencies in regulatory compliance and is not intended to have any effect on the validity of any transaction or agreement entered into by the bank with its customers.
