The Reserve Bank of India (RBI) said on Friday that it has imposed a penalty of Rs 1.32 crore on Punjab National Bank for non-compliance with regulations on “Loans and Advances — Statutory Other Restrictions” and breach of KYC norms.
The RBI has in its statutory inspection found that PNB “sanctioned working capital demand loans to two State Government-owned Corporations against amounts receivable from Government by way of subsidies/refunds/reimbursements.”
PNB also failed to preserve the records pertaining to the identification of customers and their addresses obtained during the course of business relationships in certain accounts.