RBI imposes monetary penalty of Rs 30 lakh on ICICI Bank and Rs 1.8 crore on PNB

Reserve on Wednesday announced monetary penalty on ICICI Bank, .

The Central Bank has imposed a monetary penalty of Rs 1.8 crore on Punjab National Bank and Rs 30 lakh on ICICI Bank. The penalty on PNB has been imposed for contravention of sub-section (2) of section 19 of the Banking Regulation Act, 1949 (the Act).

"This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," read RBI's readout




After considering the bank’s reply to the notice, oral submissions made during the personal hearing, and additional submissions made by the bank, RBI came to the conclusion that the charge of contravention of the aforesaid provisions of the Act was substantiated and warranted imposition of monetary penalty on the bank, to the extent of contravention of the relevant provisions of the Act, stated the Central Bank.