The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.31 crore on Punjab National Bank for violating norms related to loans and KYC (Know Your Customer). 

The bank extended working capital demand loans to two state government companies against receivables of subsidies, refunds or reimbursements. 

The bank also failed to preserve records pertaining to the identification of customers and their addresses obtained during the course of business relationship in certain accounts.

The RBI said the penalty was levied on the basis of supervisory evaluation of March 2022 accounts.