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RBI levies Rs 50 lakh fine on PNB for lag in reporting Kingfisher Airlines' account fraud

Meanwhile, Bank of Baroda in a separate filing said that the apex bank has levied a fine of Rs 50 lakh on it for delay in reporting fraud in an account.

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RBI levies Rs 50 lakh fine on PNB for lag in reporting Kingfisher Airlines' account fraud
The Reserve Bank of India (RBI) Saturday imposed a fine of Rs 50 lakh on Punjab National Bank for delay in flagging the fraud in the account of Kingfisher Airlines.

The Reserve Bank of India (RBI) Saturday imposed a fine of Rs 50 lakh on Punjab National Bank for delay in flagging the fraud in the account of Kingfisher Airlines.

"RBI observed from the fraud monitoring report-1 submitted by Punjab National Bank on July, 10 2018 that the bank had delayed the reporting of fraud in the account of Kingfisher Airlines Limited," PNB said in a regulatory filing.

"In exercise of the powers conferred under section 47(A)(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949, a penalty of 50 Lakhs Only (Rs. Fifty Lakhs Only) is hereby imposed on Punjab National Bank," the statement added.

Also Read: RBI fines SBI, ICICI, 17 other banks for non-compliance in SWIFT operations

Meanwhile, Bank of Baroda in a separate filing said that the apex bank has levied a fine of Rs 50 lakh on it for delay in reporting fraud in an account.

The RBI on Friday had imposed a collective penalty of Rs 11 crore on seven public sector banks for violating norms on current account opening.

Allahabad Bank and Bank of Maharashtra have been imposed a fine of Rs 2 crore each, Bank of Baroda, Bank of India, Indian Overseas Bank and United Bank of India have been slapped with fines of Rs 1.5 crore each, while Oriental Bank of Commerce has been imposed with a penalty of Rs 1 crore.

Also Read: RBI fines PNB, Allahabad Bank, UCO Bank, Corporation Bank for flouting KYC norms

"The Reserve Bank of India (RBI) has, by an order dated July 31, 2019, imposed monetary penalty on seven banks for non-compliance with certain provisions of directions issued by RBI on 'Code of Conduct for Opening and Operating Current Accounts'," RBI said in a release.

It said the penalties have been imposed in exercise of powers vested in the central bank under the provisions of the Banking Regulation Act, 1949.

Also Read:RBI imposes Rs 2 crore fine on PNB for flouting SWIFT rules

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