InvestorQ : Why has RBI imposed a penalty of Rs.1 crore on Punjab National Bank?
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Why has RBI imposed a penalty of Rs.1 crore on Punjab National Bank?

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Deepa Salunkhe answered.
3 months ago
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The RBI has imposed a penalty of Rs.1 crore on Punjab National Bank for contravention of the Payment and Settlement Systems Act. Apparently, PNB was operating a bilateral ATM sharing arrangement with Druk PNB Bank of Bhutan. The required authorization from the RBI for the said purpose was not sought.

This amounts to clear contravention of Section 26 (6) of the Payment and Settlement Systems Act, 2007. Consequently, the Reserve Bank of India gas imposed the Rs.1 crore penalty on PNB. This is a routine practice of encouraging compliance in global issues.
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