A fine of ₹ 1.8 crore has been imposed on Punjab National Bank (PNB) by the Reserve Bank of India (RBI), for deficiencies in regulatory compliances, while ICICI Bank will have to pay a penalty of ₹ 30 lakh.
According to a statement issued by RBI, the bank was found contravening sub-section (2) of section 19 of the Banking Regulation Act, 1949 (the Act).
The RBI fined ICICI Bank because it violated the rules regarding the “levy of penal charges on non-maintenance of minimum balances in savings bank accounts.”
The RBI inspections disclosed the bank did not comply with the directions given by RBI, “to the extent the bank levied charges for non-maintenance of minimum balance in saving accounts, which were not directly proportionate to the extent of the shortfall observed,” RBI said.
Later, RBI came to the conclusion that the non-compliance with RBI directions called for a monetary penalty.
The regulatory action against PNB came in connection with the bank’s pledge investment in borrower firms surpassing 30% of the companies’ paid-up share capital, according to the RBI.