RBI imposed a big fine on this bank, a few years ago a scam of about ₹ 12 thousand crores happened in it

The Reserve Bank of India (RBI) said on Friday that it has imposed a fine of Rs 1.31 crore on Punjab National Bank (PNB) for not following some instructions related to 'Know Your Customer' (KYC) and 'Loans and Advances'.

The Reserve Bank of India (RBI) said on Friday that it has imposed a fine of Rs 1.31 crore on Punjab National Bank (PNB) for not following some instructions related to 'Know Your Customer' (KYC) and 'Loans and Advances'. A few years ago, Gujarat diamond trader Nirav Modi had scammed about Rs 12 thousand crore in Punjab National Bank itself.

The Reserve Bank said that it conducted a statutory inspection concerning the financial position of the bank till March 31, 2022. After that, a notice was issued to the bank. After considering the bank's response to the notice, RBI found that PNB sanctioned working capital demand loans to two state government-owned corporations against the amount received from the government by way of subsidy/refund/reimbursement.

Also, the public sector lender failed to preserve records relating to the identity and address of customers obtained in the course of business relationships in certain accounts of this bank, the Reserve Bank said. However, the central bank said that the penalty is based on deficiencies in regulatory compliance and is not intended to have any effect on the validity of any transaction or agreement entered into by the bank with its customers.