Rs 30 Lakh Penalty On ICICI Bank For Charging Non-Maintenance Of Min Balance
RBI issued a monetary penalty on ICICI Bank and Punjab National Bank (PNB) on December 15 for violating certain rules.
The monetary penalty is due to violating rules related to ‘levy of penal charges on non-maintenance of minimum balances in savings bank accounts’
Penalty On ICICI Bank And Punjab National Bank (PNB)
According to a press release from the RBI, ICICI Bank was fined Rs 30 lakh and PNB was fined Rs 1.8 crore.
The RBI fined ICICI Bank for breaking rules concerning the “levy of penal charges on non-maintenance of minimum balances in savings bank accounts.”
What Did The RBI Inspections Revealed ?
So after the inspection, RBI analysed that the bank was failing to maintain a minimum balance in savings accounts that were not commensurate to the size of the shortfall.
The RBI later decided that non-compliance with RBI directives justified the imposition of a monetary penalty.
The regulatory action against PNB is connected to the bank’s pledgee investment in borrower companies of more than 30% of the companies’ paid-up share capital, according to the RBI.