RBI Imposes Rs 1 Crore Penalty On Punjab National Bank

The Reserve Bank of India has imposed a penalty of Rs 1 crore on Punjab National Bank for violating the Payment and Settlement Systems Act, 2007, the state-run lender said.

Punjab National Bank was operating a bilateral ATM-sharing arrangement with Druk PNB Bank Ltd., Bhutan, since April 2010 without prior approval or authorisation from India’s banking regulator, PNB said in an exchange filing on Friday.

RBI imposed the Rs 1 crore penalty for “contravention of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act).”

On Friday, PNB shares rose 1.37% to Rs 29.50 apiece on the BSE while the benchmark Sensex gained 0.20% to end the day at 43,443.00 points.