Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 72 lakh on Punjab National Bank by order dated October 30, 2023. The penalty was levied for non-compliance with RBI's directions on interest rates on deposits and advances, and the Master Circular on Customer Service in Banks. RBI's inspection found that the bank levied SMS charges in some accounts despite junk mobile numbers in CBS, failed to pay interest strictly as per the disclosed schedule in certain term deposits, and did not specify the interest reset date in MCLR-linked loans. After a show-cause process and hearing, RBI held that the violations were substantiated and imposed the penalty under the Banking Regulation Act, 1949.
Action Snapshot
- Primary Impact
- Fine: Rs 72.0 L
- Entity Type
- Bank
- Action Type