RBI Imposes Monetary Penalty on Federal Bank & PNB

New Delhi: The Reserve Bank of India (RBI) imposed monetary penalty of Rs 30 lakh on the Federal Bank and of Rs 72 lakh on the Punjab National Bank (PNB).

These penalties were imposed by an RBI order dated October 30, 2023.

The Federal Bank was fined because it issued some demand drafts, each for a value of rupees fifty thousand and above, without incorporating the name of the purchaser on the face of it.

The PNB was penalized for some SMS charges that the bank levied in certain accounts despite maintaining junk mobile numbers in the Core Banking Solution (CBS). Added to it the PNB did not pay interest rates strictly as per the schedule of interest rates disclosed in advance in several term deposit accounts and failed to specify the interest reset date in MCLR-linked loans.