A penalty of Rs 1.8 crore has been imposed on Punjab Nationwide Bank (PNB) by the Reserve Bank of India (RBI), whereas ICICI Bank has been fined Rs 30 lakh for deficiencies in regulatory compliances.
In response to an announcement issued by the central financial institution, PNB was discovered responsible of contravening provisions of the Banking Regulation Act, 1949, associated to pledge of shares by it.
Investigations by RBI discovered that PNB had held shares in borrower firms, as pledgee, of an quantity exceeding thirty per cent of paid-up share capital of these firms.
After going by means of the submissions given by the financial institution, RBI was satisfied that the violation known as for imposition of superb and subsequently the penalty of Rs 1.8 crore was imposed on PNB.
Within the case of ICICI Bank, the RBI stated that after conducting a statutory inspection for supervisory analysis of the financial institution, it discovered non-compliance with instructions associated to levy of prices for non-maintenance of minimal steadiness in saving accounts.
The RBI nonetheless made it clear that in each the instances, penalties have been levied on deficiencies in regulatory compliances and it was not a pronunciation on the validity of any transaction or settlement entered into by the banks with their respective clients.