Read this article to know exactly why Punjab National Bank was imposed a penalty of Rs. 1 crore by the Reserve Bank of India and how did the bank respond to it.
On November 13, State-run Punjab National Bank announced that the RBI has imposed a penalty of Rs 1 crore on it for contravention of the Payment and Settlement Systems Act.
"RBI has observed that the Bank was operating a bilateral ATM sharing arrangement with Druk PNB Bank Ltd, Bhutan, (international subsidiary of the Bank), since April, 2010 without the prior approval / authorisation from RBI," PNB said in a stock exchange filing.
The Reserve Bank of India (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)," the bank further added. PNB's shares closed at Rs 29.50 a piece on BSE, up 1.37 percent.
All while, RBI cleared a statement saying that it has canceled the Certificate of Authorisation (CoA) of five Payment System Operators (PSOs) engaged in issuance and operation of prepaid payment instruments.