Mumbai: The Reserve Bank of India imposed penalty on two banks in the country. Punjab National Bank and ICICI Bank were fined with a penalty of Rs 1.8 crore and Rs 30 lakhs respectively by the apex bank.
RBI said that ICICI Bank didn’t comply with norms on levying fees against non-maintenance of minimum balance in savings accounts. ICICI Bank levied fees which was not proportionate to the extent of shortfall observed in savings account balances.
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Punjab National Bank held shares in borrower companies, as a pledgee, in excess of 30% of the companies’ paid-up share capital. It was revealed on supervisory evaluation of the bank’s financial position as on March 31, 2019.
The RBI in a statement made it clear that in both the cases, penalties were levied on deficiencies in regulatory compliances and it was not a pronunciation on the validity of any transaction or agreement entered into by the banks with their respective customers.
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