The Reserve Bank of India (RBI) has levied a monetary penalty of ₹29.6 lakh on Punjab National Bank (PNB) for failing to comply with regulatory guidelines concerning customer service. The penalty was imposed under the powers vested in the RBI by Section 47A(1)(c), read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
According to the RBI, the penalty was specifically related to the bank’s failure in adhering to norms concerning penal charges levied on inoperative accounts for non-maintenance of minimum balance. The central bank observed that PNB had deviated from the prescribed directives meant to safeguard the interests of banking customers, particularly those with dormant or low-balance accounts.
In a regulatory filing, PNB acknowledged the penalty and clarified that the financial impact is limited to the amount of the fine. The bank also assured that it is reviewing the RBI’s observations and will take corrective steps to ensure full compliance with all applicable guidelines going forward.
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“The bank is committed to maintaining the highest standards of customer service and regulatory compliance,” PNB said in its official statement.
This development highlights the RBI’s continued vigilance in enforcing customer-centric banking practices and its intent to hold institutions accountable for lapses in service delivery.
Despite the regulatory action, investor sentiment remained largely unaffected. Shares of Punjab National Bank ended the trading session at ₹99.38, registering a modest gain of 0.6%.
The RBI reiterated that the penalty is strictly based on regulatory deficiencies and does not constitute a judgment on the validity of any transaction or agreement entered into by the bank with its customers.