Business / RBI fines PNB ₹1.80 crore and ICICI Bank ₹30 lakh for rule violations

The RBI has fined PNB ₹1.80 crore and imposed a ₹30-lakh penalty on ICICI Bank. PNB's fine related to the bank's shareholding in borrower companies, as pledgee, of an amount exceeding 30% of paid-up share capital of those companies. ICICI Bank was fined for violating rules regarding levy of penal charges on non-maintenance of minimum balances in savings bank accounts.

Vikrant Shekhawat : Dec 16, 2021, 11:48 AM
New Delhi: The Reserve Bank of India (RBI) on Wednesday said it has imposed a penalty of ₹1.8 crore on Punjab National Bank and of ₹30 lakh on ICICI Bank for deficiencies in the regulatory compliance.

In a statement, the RBI said the Statutory Inspection for Supervisory Evaluation (ISE) of Punjab National Bank (PNB) was conducted by it with reference to its financial position as of March 31, 2019.

Following the ISE and examination of other documents, the RBI found contravention of its provisions relating to the pledge of shares by the PNB.

In the case of the ICICI Bank, the RBI said the statutory inspection for supervisory evaluation of the bank was conducted by it with reference to its financial position as of March 31, 2019.

Later, the RBI found non-compliance with directions related to levy of charges for non-maintenance of minimum balance in saving accounts.

In both cases, penalties were based on deficiencies in regulatory compliance and were not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their respective customers, the RBI mentioned.