RBI imposes monetary penalty on PNB, ICICI Bank for non-compliance
Mumbai/IBNS: Reserve Bank of India (RBI) on Wednesday said it has imposed a monetary penalty on private sector lender ICICI Bank and state-run Punjab National Bank (PNB) for non-compliance with its rules.
The Central bank levied the fine of Rs 1.8 crore on Punjab National Bank (PNB) for contravention of sub-section (2) of section 19 of the Banking Regulation Act, 1949 (the Act).
ICICI Bank has been slapped a penalty of Rs 30 lakh by the apex bank.
"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," read RBI's statement.
After considering the bank’s reply to the notice, oral submissions made during the personal hearing, and additional submissions made by the bank, RBI came to the conclusion that the charge of contravention of the aforesaid provisions of the Act was substantiated and warranted imposition of monetary penalty on the bank, to the extent of contravention of the relevant provisions of the Act, stated the Central bank.