The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on Punjab National Bank (PNB), the state-run lender told exchanges on Friday. The fine has been charged for unauthorised bilateral ATM sharing arrangement with one of the international subsidiaries of the bank, PNB further said in its filing.
"Reserve Bank of India (RBI) vide its order dated 13.11.2020 has imposed a penalty of Rs 1 crore on the nank for the contravention of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act)," PNB stated.
"RBI has observed that the bank was operating a bilateral ATM sharing arrangement with Druk PNB Bank Ltd., Bhutan, (international subsidiary of the Bank), since April 2010 without the prior approval/authorisation from RBI," it further added
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