Based mostly on supervisory findings of non-compliance with its instructions (after Statutory Inspection for Supervisory Analysis on the subject of PNB’s monetary place as on March 31, 2022) and associated correspondence in that regard, RBI stated a discover was issued to the financial institution advising it to show-cause as to why penalty shouldn’t be imposed on it for its failure to adjust to the instructions.
After contemplating the financial institution’s reply to the discover and oral submissions made in the course of the private listening to, RBI discovered, inter alia, that the next prices towards the financial institution had been sustained, warranting imposition of financial penalty, the central financial institution stated in an announcement.
RBI famous that the general public sector financial institution (i) sanctioned working capital demand loans to 2 State authorities owned Firms towards quantities receivable from authorities by means of subsidies/refunds/reimbursements, and (ii) did not protect the data pertaining to the identification of shoppers and their addresses obtained in the course of the course of enterprise relationship in sure accounts.
The central financial institution stated its motion relies on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transactions or settlement entered into by the financial institution with its clients.
Additional, imposition of financial penalty is with out prejudice to some other motion which may be initiated by RBI towards the financial institution.
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