RBI Imposes Penalty On PNB, Bank of India

The Reserve Bank of India (RBI) has imposed, a monetary penalty of 2 crore on Punjab National Bank for non-compliance of certain provisions of directions issued by RBI contained in the and, the circular on "Creation of a Central Repository of Large Common Exposures - Across Banks" dated September 11, 2013.

The RBI has also imposed a Rs 4 crores on Bank of India.

The statutory Inspection for Supervisory Evaluation (ISE) of PNB was conducted by RBI with reference to its financial position as on March 31, 2018 (ISE 2018) and March 31, 2019 (ISE 2019). The examination of the risk assessment reports pertaining to ISE 2018 and 2019 revealed non-compliance with/contravention of the aforesaid directions, viz., delay in reporting of frauds and not ensuring data accuracy and integrity while submitting data on CRILC platform/ to RBI. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for such violations of the said directions.

"After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions submitted by the bank, RBI came to the conclusion that the charges of non-compliance with/contravention of the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty," the RBI said in a release.